February 5, 2024 (NO COMMENTS)
High interest rates, spiking inflation and correlation breakdowns are testing risk parity strategies
Like global meteorological patterns, historical correlations between major asset classes have breached their bounds. Risk parity funds are designed to weather all economic conditions but, after two years of an almost-perfect storm of inflation, high rates and correlation breakdowns, some have struggled – and are facing tough questions about uncharacteristic underperformance. Man AHL has been one the safer ports from the fierce macro headwinds. Yet even here, chief investment officer Russell