Risk Parity

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Investment Objective

Our objective is long-term growth of principal by diversifying across asset classes. This approach is designed to produce consistent and uncorrelated returns by achieving an optimal strategic asset allocation.

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Strategy

The Risk Parity Product implements a strategy that invests across US asset classes by risk allocation as opposed to capital allocation, seeking to build a portfolio that is broadly diversified, but not overly reliant on any single asset class. Instead of generating returns through active trading, this strategy seeks to collect the returns from holding assets that naturally diversify each other based on their fundamental relationship to changing growth and inflation environments. The strategy allocates risk exposure with the objective of creating a portfolio that is balanced to perform across shifts in the economic environment. The Risk Parity Strategy is implemented using in-house algorithms to ensure disciplined execution and to eliminate human error.

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As with all GPLS strategies, the Risk Parity Product can be customized to meet the investment objectives and needs of each individual client.

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