# AQR INVESTMENTS, LLC X-17A-5 (2022-02-25) — Broker-dealer annual report

- Company: AQR INVESTMENTS, LLC
- Form: X-17A-5
- Filed: 2022-02-25
- Period: 2021-12-31
- Accession: 0001712174-22-000001
- CIK: 1712174
- File #: 8-69990
- Type: Broker-dealer
- Material weakness: No
- Auditor: PricewaterhouseCoopers LLP
- Auditor location: New York, NY
- Contact: Patrick Ryan
- Phone: 203-742-3940
- Email: patrick.ryan@aqr.com
- Website: aqr.com
- Signed by: Patrick Ryan (Chief Financial Officer & FINOP)

Original filing: https://www.sec.gov/Archives/edgar/data/1712174/000171217422000001/Public.pdf

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# **AQR Investments, LLC**

Statement of Financial Condition As of December 31, 2021 Filed Pursuant to Rule 17a-5 of the Securities Exchange Act of 1934

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

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# **ANNUAL REPORTS FORM X-17A-S PART** Ill

|  | SEC FILE NUMBER |  |
|--|-----------------|--|

**FACING PAGE**  Information Required Pursuant to Rules 17a-5, 17a-12, and lSa-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING \_\_ 0\_1\_/0\_1\_/2\_1 \_\_\_\_ AND ENDING \_\_\_ 1\_21\_3\_1\_/2\_1 \_\_\_ \_ MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION**  NAME OF FIRM: AQR Investments, LLC TYPE OF REGISTRANT (check all applicable boxes): g Broker-dealer D Security-based swap dealer D <sup>M</sup> ajor security-based swap participant 0 Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) Two Greenwich Plaza Greenwich (City) (No. and Street) Connecticut (State) PERSON TO CONTACT W ITH REGARD TO THIS FILING 06830 (Zip Code) Patrick Ryan (203) 742-3940 Patrick.Ryan@aqr.com (Name) (Area Code - Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION**  INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* PricewaterhouseCoopers LLP (Name - if individual, state last, first, and middle name) 300 Madison Avenue New York New York (Address) (City) (State) October 20, 2003 238 10017 (Zip Code) T" of ,, • .u,Uoo with PCAOB){;f appncable) FOR OFFICIAL USE ONLY (PCAOB Reglmauoo N"mbe,, • appncable) I

• Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable.

Persons w ho are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.

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#### **OATH OR AFFIRMATION**

| I,<br>Patrick Ryan                         |    |                      | , swear (or affirm) that, to the best of my knowledge and belief, the                                                               |
|--------------------------------------------|----|----------------------|-------------------------------------------------------------------------------------------------------------------------------------|
| financial report pertaining to the firm of |    | AQR Investments, LLC | as of                                                                                                                               |
| December 31                                | 2~ |                      | is true and correct. I further swear (or affirm) that neither the company nor any                                                   |
|                                            |    |                      | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely |
| as that of a customer.                     |    |                      |                                                                                                                                     |

#### This filing\*\* contains (check all applicable boxes):

- *b2"* (a) Statement of financial condition.
- Notary Public ~ (b) Notes to consolidated statement of financial condition. ULI \_.
- D (c) Statement of income (loss) or, if there is other comprehensive incomefm' §enlel;La,statement of **VUAIG 8~** *.:J.d-3/*  comprehensive income (as defined in§ 210.1-02 of Regulation S-X).
- {d) Statement of cash flows.
- (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
- (f) Statement of changes in liabilities subordinated to claims of creditors.
- (g) Notes to consolidated financial statements.
- (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable.
- (i) Computation of tangible net worth under 17 CFR 240.18a-2.
- {j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3.
- (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
- 0 (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3.
- 0 (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3.
- 0 (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
- 0 (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.1Sc3-l, 17 CFR 240.18a-l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist.
- 0 (p) Summary of financial data for subsidiaries not consolidated in t he statement of financial condition.
- ~ (q) Oath or affirmation in accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
- (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. •
- 
- (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. ~ ~ (t) Independent public accountant's report based on an examination of the statement of financial condition.
- 0 (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- 0 (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable.
- D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable.
- D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.1Sc3-le or 17 CFR 240.17a-12. as applicable.
- D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). <sup>D</sup>(z) Other:--------------------- - -----------------
- 
- *\*"To* request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.

Signature: ,. *,17* .+ lt<-Cc Title:

,

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## **Page(s)**

| Report of Independent Registered Public Accounting Firm  1 |  |
|------------------------------------------------------------|--|
| Statement of Financial Condition  2                        |  |
| Notes to Statement of Financial Condition  3               |  |

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![](_page_4_Picture_0.jpeg)

## **Report of Independent Registered Public Accounting Firm**

To the Board of Managers of AQR Investments, LLC

# **Opinion** *on the Financial Statement* **-** *Statement of Financial Condition*

We have audited the accompanying statement of financial condition of AQR Investments, LLC (the "Company") as of December 31, 2021, including the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2021 in conformity with accounting principles generally accepted in the United States of America.

## *Basis for* **Opinion**

The financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit of this financial statement in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud.

Our audit included petforming procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion.

<sup>~</sup>*r l* ·c...~~12,,1.y *L..J'* 

February 24, 2022

We have served as the Company's auditor since 2017.

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# **AQR Investments, LLC Statement of Financial Condition**

|                                        | As of             |       |
|----------------------------------------|-------------------|-------|
| (in thousands of dollars)              | December 31, 2021 |       |
|                                        |                   |       |
| Assets                                 |                   |       |
| Cash                                   | \$                | 4,873 |
| Due from affiliate                     |                   | 542   |
| Other assets                           |                   | 207   |
| Total assets                           | \$                | 5,622 |
| Liabilities                            |                   |       |
| Accrued expenses                       | \$                | 157   |
| Total liabilities                      |                   | 157   |
| Commitments and contingencies (Note 4) |                   |       |
| Member's equity                        |                   |       |
| Member's equity                        |                   | 5,465 |
| Total member's equity                  |                   | 5,465 |
| Total liabilities and member's equity  | \$                | 5,622 |
|                                        |                   |       |

The accompanying notes are an integral part of the statement of financial condition.

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# **AQR Investments, LLC Notes to Statement of Financial Condition December 31 , 2021**

(in thousands of dollars)

#### **1. Organization and Business**

AQR Investments, LLC (the "Company") is a Delaware limited liability company. The Company is wholly owned by AQR Capital Management Holdings (B-D), LLC ("Holdings BD"), a Delaware limited liability company and the sole member of the Company.

The Company is an affiliate of AQR Capital Management, LLC (the "Adviser"), an investment adviser registered with the United States Securities and Exchange Commission (the "SEC"). The Adviser provides investment management services to its sponsored funds ("AQR Sponsored Funds") and a broad range of clients. AQR Sponsored Funds consist of various investment vehicles including limited partnerships and mutual funds.

The Company is a registered broker-dealer with the SEC and a member of the Financial Industry Regulatory Authority, Inc. ("FINRA").

The Company is registered to perform marketing and placement services for the Adviser with respect to certain AQR Sponsored Funds.

The Company does not carry margin accounts or handle customer funds or securities. As a result, the Company claims an exemption under paragraph (k)(2)(i) of Rule 15c3-3 of the Securities Exchange Act of 1934 (the "SEA").

#### **2. Significant Accounting Policies**

#### **Basis of Presentation**

The accompanying statement of financial condition is prepared in accordance with accounting principles generally accepted in the United States ("US GAAP"). All amounts herein are stated in thousands of U.S. dollars.

#### **Use of Estimates**

The preparation of the statement of financial condition in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the statement of financial condition. Actual results could differ from those estimates.

#### **Affiliates**

The Company considers Holdings BD and Holdings BD's affiliated entities, the Adviser, the Adviser's principals and the Adviser's affiliated entities as well as AQR Sponsored Funds to be affiliates.

#### **Current Expected Credit Losses**

The Company records the estimate of expected credit losses as an allowance for credit losses. For financial assets measured at an amortized cost basis, if any, the allowance for credit losses is reported as a valuation account on the statement of financial condition that is deducted from the asset's amortized cost basis.

There were no financial assets measured at an amortized basis, nor any allowance for credit losses associated with such assets as of December 31 , 2021 .

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# **AQR Investments, LLC Notes to Statement of Financial Condition December 31 , 2021**

(in thousands of dollars)

#### **Income Taxes**

The Company is a Delaware single member limited liability company that is disregarded for U.S. tax purposes and is not subject to federal, state or local income taxes. Accordingly, no provision for U.S. federal, state or local income taxes has been recorded.

#### **Cash**

Cash comprises deposits held at a major financial institution and its carrying value approximates fair value as of December 31 , 2021. At times, deposits at this institution may exceed federally insured amounts. The Company did not maintain any restricted cash balances as of December 31 , 2021 .

#### **Special Reserve Account**

The Company claims an exemption from the requirements of Rule 15c3-3 under the SEA pursuant to paragraph (k)(2)(i) because the Company does not carry margin accounts or handle customer funds or securities. Although the Company does not handle customer funds or securities, in the event that unexpected funds or securities were received, the Company maintains a special reserve account at a major financial institution for the exclusive benefit of customers to maintain compliance with the exemption pursuant to paragraph (k)(2)(i). The special reserve account, presented within cash on the statement of financial condition, had a balance of \$0 as of December 31 , 2021 .

#### **Other Assets**

Other assets include prepaid expenses and funds deposited with FINRA to pay for licensing, registration and other related fees.

#### **3. Related Party Transactions**

The Company earns fees from the Adviser pursuant to an engagement letter (the "EL").

The Company has an expense sharing agreement (the "ESA") with the Adviser whereby certain expenses, including compensation and benefits expense, platform fees, rent and occupancy related expenses, information technology expenses, information and communication expenses, and other corporate expenses, relating to certain services provided by the Adviser's employees, in their capacity as associated persons of the Company, are incurred by the Adviser or the Adviser's affiliates and allocated to the Company.

The Company has an outsourcing agreement (the "OSA") with the Adviser whereby the Adviser or the Adviser's affiliates is engaged to provide certain general support services, including human resources, information technology, and corporate finance, to the Company.

As of December 31 , 2021 , the Company had \$542 due from the Adviser, which represents the net balance due as a result of the transactions from the EL, ESA and OSA.

#### **4. Commitments and Contingencies**

In the normal course of business, the Company may be involved in litigation. As of December 31 , 2021, the Company was not involved in any litigation.

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# **AQR Investments, LLC Notes to Statement of Financial Condition December 31 , 2021**

(in thousands of dollars)

#### **5. Member's Equity**

The Company maintains a capital account for its sole member, Holdings BO. The capital account is increased by the sum of capital contributions made and/or allocation of net income and reduced by the sum of distributions or allocation of losses, if any.

## **6. Net Capital Requirements**

The Company is subject to the minimum net capital requirements imposed under Rule 15c3-1 of the SEA ("Net Capital Rule"). The Company has elected to use the alternative method as permitted under the Net Capital Rule. As such, the Company is subject to a minimum net capital requirement equivalent to the greater of \$250 or 2 percent of aggregate debit items, as defined.

As of December 31 , 2021 , the Company's net capital of \$4,716, as defined, was \$4,466 in excess of its required minimum net capital of \$250.

## **7. Subsequent Events**

Management has evaluated events that have occurred subsequent to December 31 , 2021 through February 24, 2022, the date the statement of financial condition was available to be issued, and has determined that no items require adjustment to. or disclosure in, the statement of financial condition.


Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.