Economics

Quant Who Coined Risk Parity Says Wall Street Has It Wrong

  • PanAgora’s Edward Qian says strategy is ‘a way of life’
  • Main quantitative fund has returned 20 percent in 2016
Photographer: John Taggart/Bloomberg
Lock
This article is for subscribers only.

Nowadays, it’s a rare selloff that isn’t blamed on the growing heft of a strategy called risk parity.

But to a 52-year-old quant who helped develop it, the problem isn’t that risk parity is too big, but too small.