Bridgewater All Weather

Risk Parity Not Performing? Blame The Weather.

Many high profile funds with set risk targets exhibit levels of volatility last seen only during the Global Financial Crisis. This and the disparity of results between funds in the category is the subject of this post.

Is 2022 All Bad Weather For Risk Parity?

Risk parity strategies can look very different from each other in implementation.  They may have different risk budgets, risk targets, asset class buckets or even different definitions of risk. In this particular period, however, the disparity in performance is staggering.