Cliff Asness' Q2 2025 13F Portfolio Strategy: Factor Investing in a Turbulent Macro Environment

and AQR Capital Management's Q2 2025 13F filing reveals a portfolio that is as bold as it is calculated. , AQR's strategy is anchored in large-cap technology and consumer stocks like NVIDIA (NVDA), Microsoft (MSFT), and Amazon (AMZN) AQR Capital Management LLC Q2 2025 13F Top Portfolio Holdings^[1]. But what's truly fascinating is how this portfolio navigates the shifting macroeconomic landscape—specifically, the U.S. tariff shocks and bond yield volatility that defined the quarter. Let's break down the numbers and the narrative.

Factor Tilts: Momentum Dominates, Value Struggles

AQR's Q2 2025 portfolio is a masterclass in . According to the , was the standout performer, . Stocks like NVDA, which surged on AI-driven demand, exemplify this momentum tilt. Conversely, value and lagged, with value underperforming due to poor stock selection within sectors Morningstar Factor Monitor: Q2 2025 | Morningstar Indexes^[4]. This divergence is classic: in uncertainty, while value often waits for stability.

AQR's historical emphasis on momentum is no accident. . In Q2 2025, this approach paid off as tech and communication services stocks outperformed. However, cyclical plays like ExxonMobil (XOM) and Target (TGT) faced headwinds initially, though the latter's consumer discretionary exposure eventually benefited from post-tariff détente Quarterly Review of Macro and Markets for Q2 2025^[5].

: Tariffs, Yields, and the Fed's Tightrope

The U.S. tariff rollout was a double-edged sword. On April 2, . But by May 12, . . For instance, energy giant XOM was added to, likely capitalizing on inflationary pressures and supply chain disruptions 13F Recap Q2: Asness, Balyasny, Griffin, And More^[3].

Bond yields mirrored this turbulence. . , driven by bonds 2025 Capital Market Assumptions for Major Asset Classes^[6]. This shift underscores the firm's , .

: Diversification in a High-Volatility World

AQR's Q2 2025 strategy highlights the importance of . While dominate, the firm's —leveraging trends like trade dynamics and monetary policy—adds uncorrelated returns 2025 Capital Market Assumptions for Major Asset Classes^[6]. For example, its purchases of Chevron (CVX) and Target (TGT) suggest a hedge against inflation and consumer resilience. Meanwhile, reduced positions in Adobe (ADBE) and Cisco (CSCO) signal a rebalancing toward sectors less sensitive to tariff-driven 13F Recap Q2: Asness, Balyasny, Griffin, And More^[3].

Investors should take note: in a world of and policy uncertainty, AQR's blend of factor investing and offers a blueprint. . , portfolios must prioritize flexibility and diversification.

Conclusion: AQR's Blueprint for 2025

Cliff Asness' Q2 2025 portfolio is a testament to the power of in turbulent times. By leaning into , hedging with , and adapting to , AQR has positioned itself to navigate the “higher-for-longer” yield environment and geopolitical uncertainties. For individual investors, the takeaway is clear: and asset classes, and stay nimble in the face of macroeconomic shifts.