AQR Small Cap Momentum Style Fund Class I (ASMOX)

AQR Small Cap Momentum Style Fund Class I (ASMOX) Financial Services Profile

AQR Small Cap Momentum Style Fund Class I (ASMOX) seeks long-term capital appreciation by investing in small-cap U.S. companies with positive momentum. The fund allocates primarily to equity and equity-related securities, focusing on companies listed on U.S. exchanges and over-the-counter markets, demonstrating a high beta and dividend yield.

What Is the Investment Thesis for ASMOX?

ASMOX presents an investment opportunity for those seeking exposure to small-cap U.S. equities with a momentum-driven strategy. With a market cap of $185.28M and a profit margin of 10.5%, the fund demonstrates a focused approach to generating returns. The fund's high beta of 1.41 suggests higher volatility compared to the market, which could lead to amplified gains during upward market trends but also increased losses during downturns. The dividend yield of 7.94% is a significant factor, potentially attracting income-seeking investors. A key growth catalyst is the continued interest in momentum-based investing strategies, particularly within the small-cap space. However, potential risks include the inherent volatility of small-cap stocks and the possibility that the momentum factor may not always perform as expected.

Based on FMP financials and quantitative analysis

ASMOX Key Highlights

• Market Cap: $0.18B indicates the fund's size and potential for growth within the small-cap segment.
• Profit Margin: 10.5% reflects the fund's efficiency in generating profits from its investments.
• Gross Margin: 36.7% shows the fund's profitability before operating expenses, indicating its investment selection strategy effectiveness.
• Beta: 1.41 suggests higher volatility compared to the market, which could lead to amplified gains or losses.
• Dividend Yield: 7.94% is a significant factor, potentially attracting income-seeking investors.

Who Are ASMOX's Competitors?

ASMOX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ASMOX's Key Strengths?

• Experienced investment management team.
• Disciplined momentum-based investment strategy.
• High dividend yield potentially attracts income-seeking investors.
• Focus on small-cap companies provides growth opportunities.

What Are ASMOX's Weaknesses?

• High beta indicates higher volatility compared to the market.
• Reliance on the momentum factor, which may not always perform as expected.
• Small market cap may limit investment flexibility.
• Vulnerable to market downturns due to its focus on equity.

What Could Drive ASMOX Stock Higher?

• Continued interest in momentum-based investing strategies.
• Growth and development of the small-cap market.
• Technological advancements in investment analysis.

What Are the Key Risks for ASMOX?

• Inherent volatility of small-cap stocks.
• Underperformance of the momentum factor.
• Economic downturns and market volatility.
• Increased competition from other asset management firms.

What Are the Growth Opportunities for ASMOX?

• Increased Adoption of Momentum Investing: The growing popularity of factor-based investing, particularly momentum strategies, presents a significant growth opportunity for ASMOX. As more investors seek to incorporate momentum into their portfolios, the demand for funds like ASMOX is likely to increase. The market size for factor-based investing is estimated to be in the trillions of dollars, with momentum strategies accounting for a substantial portion. Timeline: Ongoing.
• Expansion of Small-Cap Market: The continued growth and development of the small-cap market provide a fertile ground for ASMOX to identify and invest in companies with positive momentum. As more small-cap companies emerge and mature, the fund's investment universe expands, increasing the potential for generating returns. The small-cap market is expected to grow in line with overall economic expansion, offering ongoing opportunities for ASMOX. Timeline: Ongoing.
• Technological Advancements in Investment Analysis: The use of advanced technologies, such as artificial intelligence and machine learning, can enhance ASMOX's ability to identify and analyze companies with positive momentum. These technologies can help the fund to process large amounts of data and identify patterns that may not be apparent through traditional analysis methods. The adoption of these technologies can improve the fund's investment decision-making and potentially lead to higher returns. Timeline: Ongoing.
• Strategic Partnerships and Distribution Channels: Forming strategic partnerships with other financial institutions and expanding distribution channels can help ASMOX to reach a wider audience of investors. By partnering with brokerage firms, wealth management platforms, and other intermediaries, the fund can increase its visibility and attract new clients. The expansion of distribution channels can also help the fund to diversify its investor base and reduce its reliance on any single source of capital. Timeline: Ongoing.
• Product Innovation and Diversification: Developing new investment products and diversifying its investment strategies can help ASMOX to attract a broader range of investors and mitigate risk. The fund could consider launching new share classes with different fee structures or developing new funds that focus on specific sectors or industries within the small-cap market. Product innovation can help the fund to differentiate itself from competitors and capture new market opportunities. Timeline: Ongoing.

What Opportunities Does ASMOX Have?

• Growing popularity of factor-based investing.
• Expansion of the small-cap market.
• Technological advancements in investment analysis.
• Strategic partnerships and distribution channels.

What Threats Does ASMOX Face?

• Increased competition from other asset management firms.
• Changes in market conditions and investor sentiment.
• Economic downturns and market volatility.
• Regulatory changes and compliance requirements.

What Are ASMOX's Competitive Advantages?

• Established track record in momentum investing.
• Proprietary investment strategies and analytical tools.
• Experienced investment management team.

What Does ASMOX Do?

AQR Small Cap Momentum Style Fund Class I (ASMOX) is an actively managed fund seeking long-term capital appreciation. The fund was created to capitalize on the momentum factor within the small-cap equity space. ASMOX invests primarily in equity and equity-related securities of small-cap companies traded on principal U.S. exchanges or over-the-counter markets. These securities include, but are not limited to, exchange-traded funds (ETFs), equity index futures, and real estate investment trusts (REITs). The fund's investment strategy is centered around identifying and investing in companies that the Adviser determines to have positive momentum. Under normal market circumstances, ASMOX invests at least 80% of its net assets, including any borrowings for investment purposes, in small-cap U.S. companies. The fund's significant investment in common stocks reflects its focus on equity-based growth. ASMOX operates within the broader asset management industry, catering to investors seeking exposure to the small-cap segment with a momentum-driven approach. The fund's investment decisions are guided by the Adviser's assessment of momentum, which involves evaluating various factors to identify companies with strong upward price trends. The fund's objective is to outperform its benchmark by strategically allocating capital to companies exhibiting positive momentum characteristics.

What Products and Services Does ASMOX Offer?

• Invests in equity and equity-related securities of small-cap companies.
• Focuses on companies traded on U.S. exchanges or over-the-counter markets.
• Targets companies with positive momentum based on the Adviser's assessment.
• Aims for long-term capital appreciation.
• Invests at least 80% of net assets in small-cap U.S. companies under normal market conditions.
• Utilizes a momentum investment style to identify promising stocks.

How Does ASMOX Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• Aims to outperform its benchmark by strategically allocating capital to companies exhibiting positive momentum characteristics.
• Focuses on identifying and investing in small-cap companies with strong upward price trends.

What Industry Does ASMOX Operate In?

ASMOX operates within the asset management industry, which is characterized by intense competition and evolving investment strategies. The industry is influenced by market trends, economic conditions, and investor sentiment. The fund's focus on small-cap momentum investing places it within a niche segment of the market. The competitive landscape includes other asset management firms offering similar investment strategies, as well as broader market indices that serve as benchmarks for performance. The asset management industry is experiencing growth driven by increasing demand for investment products and services, particularly from individual investors and retirement savers.

Who Are ASMOX's Key Customers?

• Individual investors seeking exposure to small-cap equities.
• Institutional investors looking for momentum-based investment strategies.
• Retirement savers seeking long-term capital appreciation.

ASMOX Valuation & Market Position

With a $185.28M market cap, AQR Small Cap Momentum Style Fund Class I sits in the micro-cap segment of the market. Relative to its peer group, ASMOX's quantitative score of 60/100 is above the peer average of 47/100.

ROE 35%Key Financial Metrics

Return on equity for AQR Small Cap Momentum Style Fund Class I stands at 34.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 16.4%, showing how much profit it generates from its asset base. Its free cash flow yield is 1.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.89 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 6/9Financial Health

AQR Small Cap Momentum Style Fund Class I's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 18.10 places it in the safe zone, indicating low near-term bankruptcy risk.

ASMOX Financials

ASMOX Latest News

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ASMOX Analyst Consensus

ASMOX MoonshotScore

Common Questions About ASMOX (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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