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*Ray Dalio - Runs the world’s richest and strangest hedge fund


Ben Graham
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http://www.cfainstitute.org/learning/products/publications/rf/Pages/rf.v2009.n5.7.aspx

 

Dalio's 2009 article for understanding the situation we are in.  Dalio's paper shows he understands the debt deflation problem and yet his 13F shows broad exposure to the market. If the government response is a combination of higher taxes on the rich, money printing and anti free market activities like confiscating gold and capital and trade barriers, and war p/e ratios should eventually plummet. Why doesn't Bridgewater liquidate? For that matter, how come Buffett isn't selling Berkshire's assets? Holding cash in the currency which most debts are payable in should be a better strategy than holding assets with high p/e ratios whose valuation will plumment as the p/e ratios contract as credit destruction occurs.

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He sounds like he would be hell to work for.

 

The concept of eliminating one's ego, to allow flow of creative innovation and ideas, sounds like a great value and a good principle to instill.

 

His quoted comments and described attitude seem more like Scientology than merely the words of a man encouraging objective discourse. ???

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  • 2 years later...

He sounds like he would be hell to work for.

 

The concept of eliminating one's ego, to allow flow of creative innovation and ideas, sounds like a great value and a good principle to instill.

 

His quoted comments and described attitude seem more like Scientology than merely the words of a man encouraging objective discourse. ???

 

I think it means that when throwing around ideas you can call your boss an idiot if you can make a good piont. And that if you start acting butthurt you get fired. And that there are no politics, no managing big ego's etc. Sounds like a pretty fun enviroment to work in really.

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http://www.cfainstitute.org/learning/products/publications/rf/Pages/rf.v2009.n5.7.aspx

 

Bridgewater runs two types of flagship funds. The All Weather funds which are the risk parity funds with leveraged beta exposure and the Pure Alpha funds which are where they make their directional bets.

 

They'll never liquidate the All Weather funds based on alpha rich ideas (predicting the macro markets). Secondly,  just because Dario believes in deflation/disinformation doesn't mean he can't still have exposure to the markets and think he can change it before the drop. Lastly, derivatives and things like that aren't reported. There is a cost to trading and a piece of that is dissemination. Its possible to be long a stock publicly and short a stock through derivatives to lower the cost of disseminating your strategy.

 

Dalio's 2009 article for understanding the situation we are in.  Dalio's paper shows he understands the debt deflation problem and yet his 13F shows broad exposure to the market. If the government response is a combination of higher taxes on the rich, money printing and anti free market activities like confiscating gold and capital and trade barriers, and war p/e ratios should eventually plummet. Why doesn't Bridgewater liquidate? For that matter, how come Buffett isn't selling Berkshire's assets? Holding cash in the currency which most debts are payable in should be a better strategy than holding assets with high p/e ratios whose valuation will plumment as the p/e ratios contract as credit destruction occurs.

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