As Bridgewater Associates flagship $80 billion “All Weather Fund” strategy found difficulty in August, falling by 4.2 percent, while the macro fund was reported down 6.9 percent on the month, a document from the hedge fund explaining their approach to risk parity and how long term exposure to risk, not short term market cycles, is a key consideration at this moment in time. [dalio] With the S&P 500 index down 6.3 percent in August, many investors struggled to various degrees. Hedge fund managers such as David Einhorn, down 5.3 percent in August, and Lee Cooperman, down from 9 to 11…
Bridgewater Defends Risk Parity Strategy That It Developed & Nurtured
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.