Recent market reckonings have led to a renewed focus on identifying investment strategies that can better deliver optimally diversified portfolios to weather financial storms and provide more balanced growth.

We contend the framework of Alternative Risk Premia (ARP) investing merits a closer look. This investment approach aims to blend various market-risk premia (such as buying winners, selling losers, and buying cheap and selling expensive) to generate an uncorrelated stream of returns. 

Such strategies offer a flexible diversification framework that can enhance risk-adjusted returns, whether used as overlays or standalone strategies.

In this article, we’ll provide a brief history of the development of ARP investing,…