Asset Managers Are Worried About Risk Parity’s Returns

Lee Cooperman has some fans these days...

All the negative press surrounding risk parity this year has started to concern asset managers who currently use risk parity strategies to boost returns.

This is the conclusion of the Chief Investment Officer’s 2015 Risk Parity Investment Survey, which was conducted from July 11 to September 21, 2015. The survey asked 266 defined benefit and defined contribution corporate and public pensions, endowments, foundations, insurance funds, health care organizations, and sovereign funds about their practices and views on risk parity investment strategies and vendors. Only 93 of the managers surveyed indicated that they currently use risk parity strategies, and 173 were non-users.