An investing startup managing $10 billion is copying the largest hedge fund in the world - Foenaija - Home

An investing startup managing $10 billion is copying the largest hedge fund in the world

- 11:55 pm
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Wealthfront is offering something to its customers that looks a little like the flagship strategy of the largest hedge fund.
The California roboadviser, which manages more than $10 billion in assets, is adding risk parity, a strategy used in one of the largest funds overseen by Bridgewater Associates, a hedge fund with $119 billion,
Risk parity is a portfolio strategy that focuses on the allocation of risk, rather than on the allocation of capital. It was made famous by Bridgewater's All Weather Fund, which launched in 1996.
Risk parity is the newest addition to Wealthfront's PassivePlus suite of investment solutions. Other features that make up PassivePlus include tax loss harvesting, direct indexing, and smart beta.
"Wealthfront's PassivePlus marries decades of academic insights with technology to deliver disciplined investment approach that helps our clients achieve their financial goals," Dr. Jakub Jurek, Wealthfront's VP of research, said.
"Our launch of Risk Parity demonstrates that even more sophisticated strategies can be deployed via software in a cost-effective manner."
Wealthfront has been building out its offerings since it landed $75 million in a fundraising round led by Tiger Global, the New York investment fund. The company announced a feature earlier this year that helps users navigate the home buying process, for instance.