⁍ Bridgewater Associates has around 45 new commitments this year to invest money from existing and new clients.

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⁍ Bridgewater’s co-chief investment officer said his firm had reduced its exposure to Treasuries in favor of assets like inflation-linked bonds.

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⁍ Bridgewater’s All Weather fund returns were up between 1% and 7% this year.

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– It’s called risk parity, and it’s a mutual fund strategy that uses leverage to spread the risk between stocks, bonds, and other financial assets, as against traditional 60-40 stock and bond portfolios where equities carry more risk. It’s a popular strategy, and it’s been blamed for exacerbating market selloffs, but fund managers say they’re adapting, and new money is flowing in, Reuters reports. Most closely associated with the strategy are Bridgewater Associates and AQR. Bridgewater, which manages around $148 billion, told Reuters it has around 45 new commitments this year to invest money from existing and new clients. Many, it said, were in the $1 billion-plus range. Investor demand has been “pretty constant,” said Bridgewater’s co-chief investment officer. Bridgewater has reduced its exposure to Treasuries in favor of assets like inflation-linked bonds, and increased exposure to China. Within Treasuries, he said longer-dated maturities like the 30-year—which are less influenced by Fed policy—were more attractive. Bridgewater’s All Weather fund returns were up between 1% and 7% this year, he said. Bridgewater’s Prince, however, said risk parity struggles in low yield environments. Others counter the view that risk parity struggles in low yield environments. A paper here by PanAgora Asset Management said portfolios targeting low-yielding sovereign bonds held up well.