Allocation
Risk Parity: The Mechanics and the Criticisms
Risk parity equalizes each asset class's contribution to portfolio risk instead of its capital share — a structure whose leverage draws the sharpest published…
Author
Sofia Lindqvist
Sofia Lindqvist covers Work, Analysis and Allocation.
Articles by Sofia Lindqvist
Allocation
Asset Location: Which Assets Go in Which Accounts
Asset location places each holding in the account type where its tax treatment costs least — a framework with documented gains, stated assumptions, and known…
Allocation
Home Bias: Why Portfolios Tilt Domestic
Home bias is the documented gap between the domestic share of investor portfolios and those markets' share of world capitalization, with explanations and costs…
Allocation
Cash as an Asset Class: What It Actually Does
Cash is the portfolio's liquidity layer: near-zero price risk, a yield that follows policy rates, and a documented long-run cost that frames the allocation…