Rhett Humphreys | Source | Partner at NEPC
Rhett Humphreys
Rhett started his investment career in 1996 and joined NEPC in 1997. His consulting responsibilities and background include servicing public pension plans, corporate pension plans, endowments, foundations, health-care entities, and Taft-Hartley pension funds. He works out of NEPC’s Atlanta office.
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Risk parity now is at the margins for many investors because portfolios now are so much more diverse. At this point, risk parity can slightly decrease risk over 10 years, but doesn't play the same broad diversification role it once did.
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The problem is that the benchmark is not a very good comparison for the risk-parity portfolio and mentioned that HFR had developed the new risk-parity indexes.
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Risk-parity investors do a bit of second-guessing
Some asset owners are questioning the efficacy of risk-parity strategies.
Article
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NEPC (https://www.nepc.com)
Partner
started Sep 1997