MPI Risk Parity Research Covered by Bloomberg

“Quant funds that employed risk parity saw their riskiness as measured by realized volatility levels surging 50% to 80% higher than their stated targets, according to a study from Markov Processes International obtained by Bloomberg based on results through November… Markov found that majority of the 10 popular risk-parity strategies it reviewed saw record levels of volatility, with a “staggering” gap between the winners and losers.” – writes Bloomberg’s Isabelle Lee and senior editor John Authers in his column discussing results of MPI’s research Risk Parity Not Performing? Blame the Weather.

Harvard and Yale Are No Match for the Bears

“…how was it possible for so many endowments to make bad choices among private equity and venture capital funds? The following chart from Markov suggests that it is down to outlandishly wide variations in performance within the private equity/venture capital world,” writes John Authers about MPI’s research in his opinion piece on Bloomberg.

Mutual Funds Show Conflicted View on Puerto Rican Debt

Last week, President Barack Obama signed the Puerto Rico Oversight, Management, and Economic Stability Act, or PROMESA, into law. The much-anticipated and debated legislation gives Puerto Rico a path towards restructuring its debt. Learn more on Bloomberg Brief.