A quant trader friend of mine at a hedge fund dubbed Quantitative Methods by L'Habitant-a major book in the CAIA program-- as "Hedge Funds 101"; this can be extended to the remainder of the program.
Since portfolio management theory promotes diversification of uncorrelated assets in order to increase return and/or decrease risk, Dalio suggests it is possible to use leverage to increase return on traditionally lower risk asset classes, thus increasing their risk, while reducing portfolio risk.
