Metropolitan Museum of Art, September 23 2017. Ray Dalio while giving a speech at the 10th anniversary celebration of charity Grameen America. Today, several managers have employed “All Weather” concepts under a risk parity approach. “All Weather” is a term used to designate funds that tend to perform reasonably well during both favorable and unfavorable economic and market conditions. The “risk parity” approach was popularized by Ray Dalio’s Bridgewater Associates - the largest hedge fund by assets under management ($132.8 billions) - with the creation of the All Weather asset allocation strategy in 1996. Alex Shahidi, former relationship manager at Dalio’s Bridgewater Associate and creator of the RPAR Risk Parity ETF.
The idea here is to build something that would work for everybody. kind of like Bridgewater does, but they just do it for the wealthiest institutions in the world. to follow this quantitative approach, allotting more money to securities with lower volatility according to Bloomberg. The RPAR Risk Parity ETF plans to allocate across asset classes based on risk. Earlier this month, Bloomberg published a news article about the launch of a new Risk Parity ETF in the US.
