Optimal portfolios need risk premia

Paul Fraynt  |  K2 Advisors  |  21 August 2024  |  0.50 CE

The volatile markets of 2022 were a reminder for many that the 60/40 portfolio doesn’t weather all storms. The diversification benefits of fixed income can fade rapidly in an inflationary scenario. A renewed focus is needed to identify investment strategies that can better deliver optimally diversified portfolios to weather financial storms and provide more balanced growth for client assets. An Alternative Risk Premia (ARP) approach to investing, rooted in academic research, and blending various market-risk premia can generate a stream of returns that is uncorrelated with traditional asset c...

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