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AQR’s New ESG Fund Tops 94% of Peers by Shunning Fossil Fuels

  • Strategy shows shunning fossil fuels is still yielding results
  • AQR says shorting needs to be part of ESG strategy mix
Wind turbines.

Wind turbines.

Photographer: Krisztian Bocsi/Bloomberg
Updated on

An investment fund launched last year by AQR Capital Management LLC outperformed the vast majority of its peers thanks to a long-short ESG strategy that shuns fossil fuels. 

The AQR Sustainable Long-Short Equity-Carbon Aware Fund is up about 20% this year, which is a better result than 94% of comparable funds, according to data compiled by Bloomberg. The MSCI World Index plunged 17% in the same period.