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Cliff Asness’s AQR Adds Short-Selling Twist to ESG Investing

  • Long-short product looks to bring new edge to sustainability
  • Cliff Asness has argued that bearish strategy is vital in ESG
Cliff Asness
Cliff AsnessPhotographer: Chris Goodney/Bloomberg

Quant powerhouse AQR Capital Management LLC is planning a new ESG-focused mutual fund that will not only favor the best-behaved companies, but also punish the worst by betting against them.

The AQR Sustainable Long-Short Equity Carbon Aware Fund (ticker QNZNX) will build a long-short portfolio of U.S. and foreign stocks based on ESG criteria, according to a Tuesday filing. The product will also pursue a “net zero” carbon positioning target, it said.