Systematic Alternative Risk Premia

The Systematic Alternative Risk Premia strategy aims to deliver uncorrelated absolute returns through leveraged long–short exposures to liquid derivatives contracts.

At a Glance


Designed to generate attractive risk-adjusted, uncorrelated returns to stocks and bonds

Seeks to harvest alternative return premia of carry, momentum, and value

Through adherence to a broadly transparent, rules-based investment process, the Systematic Alternative Risk Premia strategy seeks to harvest the alternative return premiums of carry, momentum, and value via prudently leveraging long–short exposures to a broad array of 50+ liquid derivatives contracts in various stock, bond, currency, commodity, and volatility markets.

The strategy’s rules-based process is broadly transparent (reducing governance requirements), focuses on liquid markets, and utilizes banding to ensure that only meaningful signals are traded on—lowering overall portfolio turnover and transaction costs. The cost-minimizing structure of Systematic Alternative Risk Premia allows it to have fees significantly lower than traditional hedge funds.

Utilizes leveraged long–short exposures to liquid derivatives contracts across asset classes and geographies

Adopts a rules-based, transparent, low-cost structure

Investment Information

For information on how to invest in Parametric Research Affiliates Systematic Alternative Risk Premia, click below.


Related Materials


Alternative Risk Premia: Valuable Benefits for Traditional Portfolios

By Shane Shepherd Amie Ko Brandon Kunz

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An alternative risk premia strategy that relies on robust factors within a liquid, transparent, and disciplined framework has the potential to improve the long-term return prospects of traditional portfolios and to reduce their downside risk.


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When the value trade goes global, investors are poised to benefit. Evidence from the international equity, bond, currency, and commodity markets indicates that the value premium is a global phenomenon that can offer important portfolio diversification. However, the devil is in the details: we argue that the successful implementation of global value strategies critically depends on an economically motivated design.


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The alternative factor premia of carry, momentum, and value may be combined to produce an attractive and diversifying source of investment return relative to the low yields and low returns of mainstream stocks and bonds.