Risk Parity

Praise for Risk Parity “Alex’s insights and clear writing style provide a great introduction to a common investor question: how to earn equity-like returns while taking less than equity-like risk. Alex lays out the benefits of a risk parity approach to investing, defines the lower-risk asset classes that can be structured to achieve higher returns in ???parity’ with equities, explains which market environments benefit each asset class, and provides historical evidence that the approach works over many investment timeframes. If you want to learn how risk parity as an alternative to traditional 60/40 portfolio construction can work for you as an investor, Alex’s book is a great read.??? —BRIAN HIGGINS, Founder and Managing Partner, King Street Capital “Alex is a clear thinker who attacks a challenging investment framework from first principles. In Risk Parity, he peels back the onion one layer at a time, with each iteration offering more depth and nuance. Risk Parity offers both a refresher on what drives investment returns and a thoughtful paradigm to execute.” —TED SEIDES, investor; host, Capital Allocators podcast “Alex is one of the pioneers who thoughtfully allocates capital for his asset owners in an investment world with so many unknowns.” —FRAN KINNIRY, CFA, Principal, Global Head of Private Investments, Vanguard “Alex has a long track record of successful investment strategies for both institutions and high wealth individuals. He has articulated his vision for success in this book and it provides valuable insights for anyone seeking intelligent portfolio planning.” —JIM GIANOPULOS, Chairman and CEO, Paramount Pictures “Diversification is the only free lunch available to investors. Alex’s book brilliantly explains how to best balance a portfolio.” —BRUNO DEL AMA, Co-Founder, Global X ETFs Target high returns and greater consistency with this insightful guide from a leading investor The market volatility exacerbated by the COVID-19 pandemic has led many to question their exposure to risk in their own portfolios. But what should one do about it? In Risk Parity: How to Invest for All Market Environments, accomplished investment consultant Alex Shahidi delivers a powerful approach to portfolio management that reduces the potential for significant capital loss while maintaining an attractive expected return. The book focuses on allocating capital amongst four diverse asset classes: equities, commodities, Treasury bonds, and Treasury Inflation Protected Securities. You’ll learn about: The nature of risk and why traditional approaches to risk management unnecessarily give up potential returns or inadequately protect against catastrophic market events Why proper risk management is more important now than ever How to efficiently implement a risk parity approach Perfect for both individual and professional investors, Risk Parity is a must-have resource for anyone seeking to increase consistency in their portfolio by building a truly balanced asset allocation.