The Macro Allocation Principle

In this episode we answer questions from Alexi, Vaughn, Yamini, Jamie (x2) and Adam.  We discuss merger arbitrage as an asset class, the Macro-Allocation Principle applied to an accumulation portfolio, the benefits of investing in insurance companies, tail risk parity and the my favorite science paper and considerations about the lack of really old data.

And THEN we our go through our weekly portfolio reviews of the seven sample portfolios you can find at Portfolios | Risk Parity Radio. 

Additional links:

Alexi's podcast reference:  Why Merger Arb Works (aqr.com)

Alexi's correlation analysis of merger arbitrage funds:  Asset Correlations (portfoliovisualizer.com)

Artemis Capital Research Page:  Research & Market Views — Artemis (artemiscm.com)

Artemis Hawk and Serpent Paper:  DocSend

Correlation Analysis of Insurance ETFs:  Asset Correlations of KBWP (portfoliovisualizer.com)

Tail Risk Parity Paper:  Tail Risk Parity  (alliancebernstein.com)

More Is Different Science Paper:  anderson72more_is_different.pdf (tamu.edu)

Kitces Article re 4% Rule:  Can Morningstar's Withdrawal Rate Report Refute The 4% Rule? (kitces.com)

Support the show