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