Leverage aversion and risk parity

Angela Ashton | PortfolioConstruction Forum | 05 June 2013

"Leverage aversion and risk parity" by Clifford S. Asness, Andrea Frazzini, and Lasse H. Pedersen, Financial Analysts Journal, Vol 68, Number 1, 2012

Risk parity is a concept that began to be developed in the 1950s and 1960s - but the idea really only re-surfaced after the Global Financial Crisis (GFC) and it is beginning to get attention in portfolio construction circles. It's fair to say there are few local investors who've put their money where their mo...