Asness Indicates AQR Hedge Fund Might Venture Into Sports Betting

By Blog


Date Published: November 14, 2025, 11:56h.

Last Modified: November 14, 2025, 12:12h.

  • Billionaire investor hints at potential hedge fund interest in sports wagering
  • Expressed skepticism about the online sports betting market
  • Did not provide details on how AQR might participate

AQR Capital Management, established by Cliff Asness, is contemplating a foray into the sports betting sector.

Cliff Asness
Investor Cliff Asness, whose hedge fund AQR Capital is considering entering the sports betting sphere. (Image: Bloomberg)

The billionaire investor shared these thoughts during a recent episode of Bloomberg’s “Odd Lots” podcast, indicating that AQR is “assessing and exploring” opportunities in sports betting, highlighting the firm’s reputation for quantitative analyses which could be advantageous in this field.

While he recognized the vast potential within the sports betting market, Asness cautioned against exaggeration, admitting to a level of skepticism regarding online sports betting.

AQR’s Involvement in Sports Betting Remains Uncertain

Asness did not go into detail about specific strategies, such as placing bets on games or serving as a market maker on various platforms, should AQR decide to venture into sports wagering. If they opt for a market-making approach, they could tap into the rapidly expanding prediction markets segment.

For instance, Kalshi, the leading US prediction market operator by transaction volume, operates a market-making division. The firm is notable for waiving trading fees for institutional investors and seasoned bettors, seeking the liquidity these participants offer. Such liquidity helps maintain narrower spreads on event contracts, which can attract astute retail investors.

Known for its quantitative approach, AQR employs algorithms, advanced mathematical models, and complex computer programs to guide its investment strategies—skills that could facilitate an entry into prediction markets, although Asness did not explicitly state this during the Bloomberg interview.

As it stands in the evolution of prediction markets, it is believed that many hedge funds, particularly larger entities like AQR, aren’t directly engaging in event contracts. However, they are utilizing data from platforms like Kalshi and Polymarket to understand public sentiment and further enrich predictive models.

AQR’s Limited Sports Betting Affiliations

AQR may consider investments in sports betting firms, aligning with common practices in hedge fund strategies. The firm’s extensive portfolio currently includes investments in DraftKings (NASDAQ: DKNG) and Flutter Entertainment (NYSE: FLUT), which owns FanDuel, both of which are also entering the prediction markets landscape. These holdings account for approximately 0.25% and 0.11%, respectively, of AQR’s overall portfolio.

Additionally, AQR maintains modest positions in MGM Resorts International (NYSE: MGM), which holds a stake in BetMGM, and Churchill Downs (NASDAQ: CHDN). The fund also owns shares of Las Vegas Sands (NYSE: LVS), which does not have involvement in sports betting.

The hedge fund also has indirect exposure to prediction markets through its investments in Intercontinental Exchange (NYSE: ICE), a backer of Polymarket, and CME Group (NASDAQ: CME), which partners with FanDuel in the prediction market space.



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