FYI: A strategy popularized by hedge-fund titan Ray Dalio is coming soon to a brokerage near you.
The RPAR Risk Parity ETF, the brainchild of a former relationship manager at Dalio’s Bridgewater Associates and an ex-Bank of America Corp. consultant to institutional investors, plans to allocate across asset classes based on risk, regulatory filings show. The fund would be the first in the U.S. to follow this quantitative approach, allotting more money to securities with lower volatility.
It’s fortuitous timing. Risk parity strategies suffered as the longest bull market in history pushed stocks to a record, but with haven assets once again proving popular as tightening monetary policy and financial conditions strengthen the case for diversified portfolios, their performance has improved. The S&P risk parity strategy has returned almost 10% over the last 12 months, more than double the S&P 500 index of U.S. stocks.
Regards,
Ted
https://finance.yahoo.com/news/ray-dalio-inspired-risk-parity-202140708.html
