Risk Parity

Target high returns and greater consistency with this insightful guide from a leading investor

The market volatility exacerbated by the COVID-19 pandemic has led many to question their exposure to risk in their own portfolios. But what should one do about it?

In Risk Parity: How to Invest for All Market Environments, accomplished investment consultant Alex Shahidi delivers a powerful approach to portfolio management that reduces the potential for significant capital loss while maintaining an attractive expected return.

The book focuses on allocating capital amongst four diverse asset classes: equities, commodities, Treasury bonds, and Treasury Inflation Protected Securities. You'll learn about:

• The nature of risk and why traditional approaches to risk management unnecessarily give up potential returns or inadequately protect against catastrophic market events
• Why proper risk management is more important now than ever
• How to efficiently implement a risk parity approach

Perfect for both individual and professional investors, Risk Parity is a must-have resource for anyone seeking to increase consistency in their portfolio by building a truly balanced asset allocation.

Auteur

ALEX SHAHIDI is Managing Partner and Co-Chief Investment Officer at Evoke Advisors, one of the largest registered investment advisors in the United States. He has over two decades of experience as an investment advisor managing billions of dollars for institutional and ultra-high-net-worth clients. Alex is a Chartered Financial Analyst charterholder, a Certified Investment Management Analyst, and a Certified Financial Planner. Barron's magazine has repeatedly ranked him as one of the top financial advisors in the country. Alex has been interviewed on Bloomberg Television and Radio, BBC World News, and Yahoo! Finance and for articles in the Wall Street Journal, Barron's, and other major publications. He has also been featured in numerous podcasts including Capital Allocators, The Investor's Podcast, and Seeking Alpha.

Contenu

Foreword ix Preface xi Acknowledgments xiii About the Author xv Introduction xvii Chapter 1 What Is Risk Parity? 1 Chapter 2 Two Steps to Build a Well-Balanced Portfolio 11 Chapter 3 Equities 21 Chapter 4 Treasuries 35 Chapter 5 TIPS 51 Chapter 6 Commodities 63 Chapter 7 Other Asset Classes 75 Chapter 8 Risk Parity Portfolio Summary 89 Chapter 9 Risk Parity Portfolio Historical Returns 99 Chapter 10 The Timeliness of Risk Parity 115 Chapter 11 The Rebalancing Boost 129 Chapter 12 Efficient Implementation 135 Chapter 13 When Does Risk Parity Underperform? 143 Chapter 14 FAQs 155 Chapter 15 Conclusion 173 Index 175