AQR Capital Management's Q2 2025 13F Portfolio Update Reveals Strategic Adjustments

AQR Capital Management, a prominent quantitative investment firm co-founded by Cliff Asness, reported a significant expansion in its 13F portfolio during the second quarter of 2025. The firm's reported holdings increased from approximately $97 billion to $121 billion, as detailed in its 13F Form filed with the SEC on August 14, 2025. This substantial growth underscores active management and strategic reallocations within its diversified portfolio, which typically comprises over 2000 positions.

The top five holdings—Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Amazon.com (AMZN), and Alphabet (GOOGL)—collectively represent approximately 8% of the total portfolio value. Nvidia (NVDA) remains AQR's largest single 13F position, constituting 2.54% of the portfolio. The firm demonstrated continued confidence in the semiconductor giant, executing a minor ~2% stake increase during the quarter, signaling an enduring bullish sentiment towards its growth trajectory, likely tied to its pivotal role in artificial intelligence.

Key Portfolio Reallocations Across Sectors

Analysis of the Q2 2025 filing reveals a series of calculated adjustments, with significant stake increases in several key companies while others experienced trims.

Significant Stake Increases:

AQR substantially increased its exposure to several firms, reflecting a discerning quantitative approach to market opportunities:

  • Broadcom Inc. (AVGO): Following previous increases, AQR executed a marginal stake increase this quarter. This build-up has been ongoing, with the stock now trading at approximately $345.
  • Verisign Inc. (VRSN): The firm aggressively increased its VRSN position by approximately ~75% last quarter, followed by a further one-third increase this quarter. These acquisitions occurred at prices ranging between ~$204 and ~$256, then between ~$229 and ~$290, with the stock currently at approximately $282.
  • Arista Networks (ANET): AQR significantly boosted its ANET holdings, with a ~155% stake increase last quarter and an additional ~13% this quarter. Purchases were made at prices between ~$75 and ~$134, and subsequently between ~$59 and ~$103, with the stock now at approximately $150.
  • Merck & Co. (MRK): A long-term holding, Merck saw a ~13% stake increase this quarter, building on earlier additions. The stock currently trades at $81.51.
  • General Motors (GM): After a substantial ~150% stake increase in the prior quarter, AQR added a marginal amount to its GM position this quarter, with the stock currently around $60.
  • Adobe Inc. (ADBE): A minor ~2% stake increase was observed this quarter, extending a notable ~115% increase from the preceding quarter.

Position Trims:

Conversely, AQR reduced its exposure to several prominent technology companies, indicating a strategic rebalancing:

  • Apple Inc. (AAPL): Despite remaining the third-largest 13F position at 1.69% of the portfolio, Apple experienced marginal trimming over the last two quarters. The stock currently trades at approximately $246.
  • Amazon.com (AMZN): Representing about 1% of the portfolio, AQR implemented a ~7% trimming of its Amazon holdings this quarter.
  • Meta Platforms (META): The firm reduced its Meta position, which constitutes 0.86% of the portfolio, by approximately ~15% this quarter. These transactions occurred at prices ranging between ~$480 and ~$748. Marginal trimming was also noted in prior quarters.
  • Alphabet Inc. (GOOGL): AQR trimmed its Alphabet stake by approximately ~7% this quarter.
  • Johnson & Johnson (JNJ): A ~9% trimming was applied to AQR's JNJ position this quarter.
  • CME Group Inc. (CME): The firm executed a ~14% selling of its CME stake this quarter.

AQR's Quantitative Strategy and Market Implications

AQR Capital Management's portfolio activity highlights its adherence to a "balanced quantitative approach," which meticulously emphasizes both momentum and value factors. This methodology involves combining various quantitative styles to construct diversified, risk-adjusted portfolios that aim for a low correlation to equity-only portfolios. The sustained, significant allocation to Nvidia, alongside other major technology companies, suggests a broader institutional bullish sentiment towards the technology sector and AI-driven growth.

The trims in some mega-cap tech stocks, even if marginal, suggest a strategic rebalancing by a major quantitative hedge fund. This could indicate a shift in AQR's models' signals regarding the momentum or value prospects of these companies compared to other investment opportunities, or a tactical move towards diversification within its technology holdings. Short-term, these portfolio adjustments by a significant fund like AQR could lead to increased trading activity or slight price movements in the mentioned stocks as other investors react to the disclosed positioning. Long-term, such movements from a prominent quantitative player could influence broader institutional investor trends and either validate or challenge existing market narratives around these large-cap technology, healthcare, and industrial companies.

Broader Market Context and Outlook

With over $120 billion of assets under management, AQR Capital Management's quarterly 13F filings offer valuable insights into the sophisticated strategies employed by leading quantitative firms. The observed reallocations in Q2 2025, particularly the nuanced approach to major technology holdings—increasing some while trimming others—reflect a dynamic investment environment where even established giants are subject to continuous re-evaluation based on quantitative signals. The firm's increased conviction in names like Verisign, Arista Networks, Merck, and General Motors points to a discerning view on relative value and growth opportunities outside of the most prominent tech plays.

Looking ahead, market participants will closely monitor future 13F filings from AQR and other major quantitative funds to discern ongoing trends and evolving investment theses. The current adjustments suggest a focus on balancing high-growth momentum plays with established value propositions, alongside an openness to reallocate capital based on changing market dynamics and quantitative model outputs. This proactive stance is likely to continue shaping institutional investor behavior and could provide further clues regarding the sustainability of current market narratives in the evolving economic landscape.