Ray Dalio's risk-parity funds experience investor exodus due to sub-par returns, reducing AUM from $160bn to $90bn.

Ray Dalio's risk-parity funds face investor exodus after five years of sub-par returns, with assets under management falling to $90bn in 2023 from a peak of $160bn in 2021. The strategy, pioneered by Dalio and first launched in 1996, involves diversifying across a range of assets and equalising their volatility. However, institutional investors are pulling out their money, citing the strategy's lack of success since the Great Financial Crisis.

April 22, 2024
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