Bridgewater’s Risk-Parity Shift Jolts a $400 Billion Quant Trade
- Firm doubts if bonds can hedge and so moves into alternatives
- PanAgora still touts diversification value of sovereign debt
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The $400 billion corner of quant investing known as risk parity has a history of doubt and division, and Bridgewater Associates has started a new chapter.
Ray Dalio’s $138 billion asset manager has tweaked its version of the strategy by moving into alternatives to conventional bonds as yields hit historic lows, a person familiar with the matter has confirmed.