Secret formula delivers returns – but at a price

Risk parity and risk premia have left the lab and are finding favour with investors. But does the practice match the theory?

Limited risk, steady returns. It is a combination for which fund managers have been hunting for decades.

Well, they have found it - some think. It is a strategy dubbed "risk premia" investing and money has been pouring into these types of funds in recent years.

WSJ Logo
Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a BillionaireExternal link

Ray Dalio Sells Last Stake in Bridgewater, the Hedge Fund That Made Him a Billionaire