Pretty Soon, You’ll Get to Invest Just Like Ray Dalio

Ray Dalio may be slowing down, but the investment strategy he popularized is just getting started.

Bloomberg News reported recently that Dalio, founder of the world’s largest hedge fund, Bridgewater Associates LP, will spread the firm’s ownership among more employees and give them a say about management and governance.

Dalio founded Bridgewater in 1975, but he will most likely be remembered for the All Weather fund the firm launched more than two decades later in 1996. That fund was the first to offer a strategy that has come to be known as “risk parity.”

Investors may not yet be familiar with risk parity, but that’s about to change. Putnam Investments introduced a risk parity mutual fund last year. Robo-adviser Wealthfront Inc. launched one this year and added it in February to accounts with more than $100,000 in taxable assets, raking in $780 million for the fund so far, according to Morningstar. More funds are likely to follow.

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