An Exposé on Ray Dalio and Bridgewater Associates

By on July 23, 2011

John Cassidy of The New Yorker has written a lengthy and interesting article on the rise, philosophy and principles of Ray Dalio, manager of the largest hedge fund in the world. Called a cult by some, Dalio’s Bridgewater Associates has attracted a massive amount of institutional capital enabling him to earns billions per year and become one of the richest men on the planet.

Unlike most hedge funds, Dalio shies away from making concentrated bets, knowing the unknown is constantly lurking around the corner. It seems to be working as his Pure Alpha fund has had a long history of success and is up 10 percent so far this year.

As for his view of the future, Dalio believes the economy is slowing and will continue to do so.  He sees a deleveraging continuing for years.  Countries with high debt to GDP ratios will print money in order to manage the debt leading to collapsing currencies and bond markets.  Those developed countries tied to the euro who don’t have the money printing option will suffer through “classic depressions,” according to Dalio.  He expects the difficulties to culminate in late 2012 or early 2013.

Cassidy provides a superb view into the mind and “machine” of the ultra-successful Ray Dalio.

Source:  The New Yorker

3 Comments

  1. WGD

    July 27, 2011 at 7:07 pm

    Dalio is but a shadow of a proxy for The Sultan of Savannah!

  2. Mike Hunt

    July 28, 2011 at 2:49 pm

    Who is the sultan of savannah?

  3. Barron Maestro

    July 28, 2011 at 4:17 pm

    The Sultan of Savannah, previously referred to as the Wizard of Franklin, is a personal acquaintance who had great success timing the market in 2007-2008, middling results in 2009-2010, and is now again on a winning streak. His spirits rise and fall depending on his ability to beat the masses at the loser’s game.

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