Thu, Nov 12, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Now is a good time to buy protection cheaply in the options market

Thursday, July 24, 2014

amb
Patrick Rudden
Benedicte Gravrand, Opalesque Geneva:

Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have their roots in some of the biggest funds out there including Bridgewater.

"Risk parity has been around for a long time and it’s a simple idea," says Patrick Rudden.

Rudden is co-manager of the Dynamic Diversified Portfolio and International Head of Multi-Asset Solutions at AllianceBernstein, a global investment management company. He has published numerous articles and research papers about value investing, asset allocation and risk management. He shares his research findings and his investment outlook with Sona Blessing in a recent Opalesque Radio interview.

The idea of risk parity, he continues, is that if you put half your money in equities, the other half in bonds, you might think you are balanced. But equities are much riskier than bonds. Risk parity tries to have a more balanced exposure in the risk space. In order to do that, one can leverage up the bonds to get to a similar risk level to equities, and lever down more volatile assets. The aim is to have a balanced exposure to growth assets......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: DACH institutions push alternatives to 32.3% of portfolios as hedge funds make a comeback[more]

    Matthias Knab, Opalesque for New Managers: Institutional investors in Germany, Austria and Switzerland now hold almost a third of their portfolios in alternative investments, and they are more confident than ever in

  2. KRX chief courts CalPERS for bigger bet on Korea[more]

    Korea Exchange Chairman and CEO Jeong Eun-bo held talks with California Public Employees' Retirement System, or CalPERS, to promote greater investment in South Korea's capital markets, the bourse operator announced Wednesday. Jeong met with CalPERS Chief Investment Officer Stephen Gilmore.

  3. 755 Unicorns, $8 Trillion: Fifth Era maps the autonomous digital economy[more]

    Matthias Knab, Opalesque for New Managers: Fifth Era Partners, a specialized asset manager focused on the convergence of Internet, AI/Agentic and Blockchain technologies, has released the findings of its 13th Bia

  4. Opalesque Exclusive: "Enough beta plays" - how Fasanara builds an alpha-only multi-strategy platform[more]

    Matthias Knab, Opalesque for New Managers: Most multi-strategy funds promise diversification. Fewer can explain why their return streams should stay independent when markets turn. In an Opalesque SkillsLab investor

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m