Ray Dalio's Bridgewater

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Seasonal
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Ray Dalio's Bridgewater

Post by Seasonal »

There are many posts here quoting Ray Dalio, founder of Bridgewater, a massive hedge fund. I therefore thought this might be of interest:

Image

Usual disclaimer about looking at short term performance.
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btq96r
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Re: Ray Dalio's Bridgewater

Post by btq96r »

Yeah, that Bloomberg article the chart came from was an interesting read. It's all good to be the guy who writes a book and does all kinds of speaking engagements, but if your house is on fire while you're on the road, that's a big problem.
Elysium
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Re: Ray Dalio's Bridgewater

Post by Elysium »

Market is collectively more smarter than any one particular individual, even those claimed by media or self as greater than others. Bet against the market, get lucky sometimes, do that for longer periods and luck runs out eventually. This is always the history and lesson to be learned. Clearly, they bet against the market this year like many who thought we are staring into the abyss at -30%, many made bets that -60% or more is coming. It's called winning the losers game for no reason, you win the game by not playing.
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JoMoney
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Re: Ray Dalio's Bridgewater

Post by JoMoney »

If we're going to discuss an article and it's content, might be worth providing a link to it:
Not certain this is the article but appears to have the same graphic

https://www.bloombergquint.com/business ... easy-staff

https://archive.is/ZBL3t
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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TheTimeLord
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Re: Ray Dalio's Bridgewater

Post by TheTimeLord »

Seasonal wrote: Tue Sep 15, 2020 5:57 am There are many posts here quoting Ray Dalio, founder of Bridgewater, a massive hedge fund. I therefore thought this might be of interest:

Image

Usual disclaimer about looking at short term performance.
The firm offers three hedge funds to its clients: the Pure Alpha fund, the All Weather fund and the Pure Alpha Major Markets fund. I believe the All Weather is considered the flagship.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]
Xrayman69
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Re: Ray Dalio's Bridgewater

Post by Xrayman69 »

Seasonal wrote: Tue Sep 15, 2020 5:57 am There are many posts here quoting Ray Dalio, founder of Bridgewater, a massive hedge fund. I therefore thought this might be of interest:

Image

Usual disclaimer about looking at short term performance.
Apparently I’ve outperformed this hedge fund EVERY year listed without a 2/20 cost. Hmm.
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Seasonal
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Re: Ray Dalio's Bridgewater

Post by Seasonal »

JoMoney wrote: Tue Sep 15, 2020 8:12 am If we're going to discuss an article and it's content, might be worth providing a link to it:
Not certain this is the article but appears to have the same graphic

https://www.bloombergquint.com/business ... easy-staff

https://archive.is/ZBL3t
Fair point. I got the graphic from https://www.bloomberg.com/news/articles ... easy-staff which appears to be the same text.
cainxinth
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Re: Ray Dalio's Bridgewater

Post by cainxinth »

Dalio is sorta the anti-Bogle. Whereas Bogle was reserved and thoughtful, Dalio is eccentric and effusive. Bogle taught moderation, cautiousness, and long-term thinking. Dalio coverts his own brand of pop psychology into questionable business philosophies and then enforces them in an almost cult-like way in his fund.
BV3273
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Re: Ray Dalio's Bridgewater

Post by BV3273 »

cainxinth wrote: Tue Sep 15, 2020 8:45 am Dalio is sorta the anti-Bogle. Whereas Bogle was reserved and thoughtful, Dalio is eccentric and effusive. Bogle taught moderation, cautiousness, and long-term thinking. Dalio coverts his own brand of pop psychology into questionable business philosophies and then enforces them in an almost cult-like way in his fund.
I agree. I know someone who works there and another who interviewed there. It’s his way or the highway.
columbia
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Re: Ray Dalio's Bridgewater

Post by columbia »

BV3273 wrote: Tue Sep 15, 2020 8:56 am
cainxinth wrote: Tue Sep 15, 2020 8:45 am Dalio is sorta the anti-Bogle. Whereas Bogle was reserved and thoughtful, Dalio is eccentric and effusive. Bogle taught moderation, cautiousness, and long-term thinking. Dalio coverts his own brand of pop psychology into questionable business philosophies and then enforces them in an almost cult-like way in his fund.
I agree. I know someone who works there and another who interviewed there. It’s his way or the highway.
He excels at making billions of dollars for....himself, so makes sense.
retiringwhen
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Re: Ray Dalio's Bridgewater

Post by retiringwhen »

Apropos of nothing, the title of this thread made me think of something completely different, I was surprised to find it was about a hedge fund complex.

I thought of Ray Catena Bridgewater (A local Infiniti dealer) https://www.bridgewaterinfiniti.com/

I guess that shows how much I follow Ray Dalio :beer
rich126
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Re: Ray Dalio's Bridgewater

Post by rich126 »

The performance also marks an abrupt reversal from the previous year. In 2018 the Pure Alpha Strategy gained 14.6 percent in a year when most asset markets finished in negative territory, and many hedge fund managers were flat or down. All Weather lost 5.1 percent in 2018.

Over its 28 year history, Pure Alpha has produced average annual returns of 11.5 percent per year. Since its inception in 1996, All Weather has returned 7.8 percent per year on average.
https://www.institutionalinvestor.com/a ... %20average.

They can have huge hits and misses. I don't have enough money to invest in hedge funds. I'm sure some have done well for investors but many others have failed.

Always easy to jump on one when it is not doing so well.
hicabob
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Re: Ray Dalio's Bridgewater

Post by hicabob »

rich126 wrote: Tue Sep 15, 2020 2:21 pm I don't have enough money to invest in hedge funds.
Few have enough to invest in a Bridgewater fund. I think they want an about 8 billion investment to be interested in a client. It's a strange company ... I have a distant relative employed there, their returns vs boglehead returns are a delicate subject.
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Brianmcg321
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Re: Ray Dalio's Bridgewater

Post by Brianmcg321 »

The more Dalio talks the more I think he's a space cadet. I can't finish any interview with him as I just get sick of how arrogant and condescending he talks.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
rich126
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Re: Ray Dalio's Bridgewater

Post by rich126 »

hicabob wrote: Tue Sep 15, 2020 2:30 pm
rich126 wrote: Tue Sep 15, 2020 2:21 pm I don't have enough money to invest in hedge funds.
Few have enough to invest in a Bridgewater fund. I think they want an about 8 billion investment to be interested in a client. It's a strange company ... I have a distant relative employed there, their returns vs boglehead returns are a delicate subject.
$8B is a common number today. Read earlier today about a guy that gave away $8B over the last 4 decades. Only kept $2M for him and his wife.

https://www.forbes.com/sites/stevenbert ... lly-broke/
(title isn't really true IMO)

And I think I did read about meetings at his company and how strange they are.
taojaxx
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Re: Ray Dalio's Bridgewater

Post by taojaxx »

Y'all are pretty harsh with Ray Dalio. This is one of his funds on one year. His main input has been risk parity, an agnostic approach to investing, ruling out market timing and prognostications about the future. I would have expected bogleheaders to be more appreciative of such an approach.
Not that it matters to him and his $160 Bn AUM anyways... :moneybag
BillWalters
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Re: Ray Dalio's Bridgewater

Post by BillWalters »

My main issue with Ray Dalio is that “radical transparency” only seems to flow downhill. Shocking.

If 516 guys flip coins, one of them will flip the same side of the coin 9 times in a row, on average. History tells us the winners in the hedge fund game are often lucky coin flippers.
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Brianmcg321
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Re: Ray Dalio's Bridgewater

Post by Brianmcg321 »

taojaxx wrote: Tue Sep 15, 2020 7:34 pm Y'all are pretty harsh with Ray Dalio. This is one of his funds on one year. His main input has been risk parity, an agnostic approach to investing, ruling out market timing and prognostications about the future. I would have expected bogleheaders to be more appreciative of such an approach.
Not that it matters to him and his $160 Bn AUM anyways... :moneybag
If you want risk parity it would be better to just use the Harry Browne Permanent Portfolio. The PP is up 14% this year. That would be a more bolglehead approach. Not some leveraged hedge fund.

Edit: Portfolio deleted. Contained incorrect information.
Last edited by Brianmcg321 on Tue Sep 15, 2020 8:17 pm, edited 1 time in total.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
000
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Re: Ray Dalio's Bridgewater

Post by 000 »

Brianmcg321 wrote: Tue Sep 15, 2020 7:53 pm If you want risk parity it would be better to just use the Harry Browne Permanent Portfolio. The PP is up 14% this year. That would be a more bolglehead approach. Not some leveraged hedge fund.
Yes, the PP just keeps chugging along. Another vote for lazy portfolios instead of expensive complex solutions.
Not sure the relevance of BWB in your comparison?
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Vegomatic
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Re: Ray Dalio's Bridgewater

Post by Vegomatic »

Re: Brianmcg321's 09-15-20 7:53 pm suggestion: "If you want risk parity it would be better to just use Harry Browne Permanent Portfolio..."

Another alternative might be a new ETF, symbol RPAR, with a short, but interesting, performance history:

ETF.com
https://www.etf.com/RPAR

RPAR Website
https://www.rparetf.com/rpar

EQMIndexes (RPAR Index Website)
https://eqmindexes.com/risk-parity-index-summary/
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Brianmcg321
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Re: Ray Dalio's Bridgewater

Post by Brianmcg321 »

000 wrote: Tue Sep 15, 2020 8:10 pm
Brianmcg321 wrote: Tue Sep 15, 2020 7:53 pm If you want risk parity it would be better to just use the Harry Browne Permanent Portfolio. The PP is up 14% this year. That would be a more bolglehead approach. Not some leveraged hedge fund.
Yes, the PP just keeps chugging along. Another vote for lazy portfolios instead of expensive complex solutions.
Not sure the relevance of BWB in your comparison?
I thought that was the Bridgewater fund. LOL.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
000
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Re: Ray Dalio's Bridgewater

Post by 000 »

Brianmcg321 wrote: Tue Sep 15, 2020 8:15 pm
000 wrote: Tue Sep 15, 2020 8:10 pm
Brianmcg321 wrote: Tue Sep 15, 2020 7:53 pm If you want risk parity it would be better to just use the Harry Browne Permanent Portfolio. The PP is up 14% this year. That would be a more bolglehead approach. Not some leveraged hedge fund.
Yes, the PP just keeps chugging along. Another vote for lazy portfolios instead of expensive complex solutions.
Not sure the relevance of BWB in your comparison?
I thought that was the Bridgewater fund. LOL.
:mrgreen:
taojaxx
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Re: Ray Dalio's Bridgewater

Post by taojaxx »

Brianmcg321 wrote: Tue Sep 15, 2020 7:53 pm
taojaxx wrote: Tue Sep 15, 2020 7:34 pm Y'all are pretty harsh with Ray Dalio. This is one of his funds on one year. His main input has been risk parity, an agnostic approach to investing, ruling out market timing and prognostications about the future. I would have expected bogleheaders to be more appreciative of such an approach.
Not that it matters to him and his $160 Bn AUM anyways... :moneybag
If you want risk parity it would be better to just use the Harry Browne Permanent Portfolio. The PP is up 14% this year. That would be a more bolglehead approach. Not some leveraged hedge fund.

https://www.portfoliovisualizer.com/bac ... tion5_2=25
"Bridgewater Bancshares"???
You're pronouncing on Ray Dalio's contribution and illustrating it with "Bridgewater Bancshares"?
Bridgewater Bancshares are about as related to Dalio's funds as Shakespeare Fishing rods are related to Shakespeare.
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Brianmcg321
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Re: Ray Dalio's Bridgewater

Post by Brianmcg321 »

taojaxx wrote: Tue Sep 15, 2020 8:21 pm
Brianmcg321 wrote: Tue Sep 15, 2020 7:53 pm
taojaxx wrote: Tue Sep 15, 2020 7:34 pm Y'all are pretty harsh with Ray Dalio. This is one of his funds on one year. His main input has been risk parity, an agnostic approach to investing, ruling out market timing and prognostications about the future. I would have expected bogleheaders to be more appreciative of such an approach.
Not that it matters to him and his $160 Bn AUM anyways... :moneybag
If you want risk parity it would be better to just use the Harry Browne Permanent Portfolio. The PP is up 14% this year. That would be a more bolglehead approach. Not some leveraged hedge fund.

https://www.portfoliovisualizer.com/bac ... tion5_2=25
"Bridgewater Bancshares"???
You're pronouncing on Ray Dalio's contribution and illustrating it with "Bridgewater Bancshares"?
Bridgewater Bancshares are about as related to Dalio's funds as Shakespeare Fishing rods are related to Shakespeare.
That has already been discussed. Thanks.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.
taojaxx
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Re: Ray Dalio's Bridgewater

Post by taojaxx »

Vegomatic wrote: Tue Sep 15, 2020 8:11 pm Re: Brianmcg321's 09-15-20 7:53 pm suggestion: "If you want risk parity it would be better to just use Harry Browne Permanent Portfolio..."

Another alternative might be a new ETF, symbol RPAR, with a short, but interesting, performance history:

ETF.com
https://www.etf.com/RPAR

RPAR Website
https://www.rparetf.com/rpar

EQMIndexes (RPAR Index Website)
https://eqmindexes.com/risk-parity-index-summary/
RPAR is definitely a good comparator. Run by Alex Shahidi, Bridgewater alumni, author of "Balanced Asset Allocation", a nice layman description of risk parity
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