Skip to main content

Ray Dalio in FT

If you stopped by FT Alphaville yesterday, you may have already seen mention of Financial Times' interview with hedge fund manager Ray Dalio, of Bridgewater Associates.

The full article is available at the link above (FT.com), and it is an interesting profile of one of the hedge fund world's most highly regarded figures. Here are a few excerpts from the piece:

"Mr Dalio, who founded his company, Bridgewater Associates, more than 30 years ago, is relentless in his pursuit of difference. He tracks his funds' correlations to the market and quickly tacks away whenever they appear to converge.

His singular view has shown results, propelling Bridgewater to become a highly regarded $150bn institutional manager as well as the third biggest hedge fund manager in the world. Bridgewater's hedge funds typically returned about 15 per cent a year, after fees, for the past 15 years. In 2007 the performance range was 9 to 11.2 per cent, net of fees, for its three hedge funds, a respectable showing in an environment where many big funds have faltered."

The article goes on to detail Dalio's views on investment performance, leverage, and the changing face of investment management.

"One thing he is certain about is the profound change that he says is taking place in the investing business as traditional asset classes are dissolving.

" "Investments were [once] in stocks and bonds and managers specialised in one or the other. An investment manager was different from a real estate owner, who was different from a private business owner. Now [almost] everything that earns money is securitised, often derivatives are created on them and the game is to make money by mixing them into optimally structured portfolios." "

You can see the full article online at the link above or in today's Financial Times print edition.

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance , I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart. So here's what a real stock market bubble looks like.  Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ $BCOR pic.twitter.com/xjsMk433H7 — David Shvartsman (@FinanceTrends) February 24, 2015   For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan , turned to rubble. As detailed in our post, " Round trip stocks: Momentum booms and busts ", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months.  In a pattern common to many parabolic shooting stars, the s

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL!  Please bookmark our new web address at Financetrendsletter.com Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner .   Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead! As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter . You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter).  Stay up to date with our real-time insights and updates on Twitter .

Jesse Livermore: How to Trade in Stocks (1940 Ed. E-book)

If you've been around markets for any length of time, you've probably heard of 20th century supertrader, Jesse Livermore . Today we're highlighting his rare 1940 work, How to Trade in Stocks (ebook, pdf). But first, a brief overview of Livermore's life and trading career (bio from Jesse Livermore's Wikipedia entry). "During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly. Ironically, Livermore sometimes did not follow his rules strictly. He claimed that lack of adherence to his own rules was the main reason for his losses after making his 1907 and