FYI: For investors wanting diversification, risk parity is superior to the endowment model, according to new PanAgora
research.
Over the last 20 years, institutional investors have raced to employ the endowment model with its large allocation to alternatives to diversify away from the equity risk of in a traditional 60-40 portfolio. But new research from quantitative asset manager PanAgora finds investors would have been better off taking a risk-parity approach over the last 10 years if they wanted diversification.
Regards,
Ted
https://www.institutionalinvestor.com/article/b1dv4bj4nmwxh6/Risk-Parity-Beats-the-Endowment-Model
