Money and Finance
- The Soul Of A Hedge Fund 'machine'
Link to: The Soul of a Hedge Fund 'Machine' The Bridgewater founder talks about how his firm measures employees and economies to steer its $160 billion in investments. How do you build the world's largest hedge fund? Bridgewater...
- Berkshire Avoids Rout As Buffett Sidesteps Bonds
Warren Buffett’s preference for buying stocks and whole companies rather than bonds is helping Berkshire Hathaway Inc. (BRK/A) weather a spike in interest rates better than other insurers. Book value rose 2 percent to about $122,900 per Class A share...
- The Billionaire Ray-man Who Plays By His Own Rules
Never say anything about a person you wouldn’t say to him directly. If you do, you’re a slimy weasel.” So runs principle 11 of Ray Dalio’s guidelines to life: part self-help guide, part radical philosophy, part club-house rules. And the blueprint...
- In Punishing Year For Hedge Funds, Biggest One Thrived
Found via ValueWalk. The world’s biggest hedge fund is also one of the best performers. Bridgewater Associates, which manages nearly $120 billion, posted returns of 23 percent in 2011 — a year when the average hedge fund portfolio lost 5 percent....
- Mastering The Machine - By John Cassidy
How Ray Dalio built the world’s richest and strangest hedge fund. Ray Dalio, the sixty-one-year-old founder of Bridgewater Associates, the world’s biggest hedge fund, is tall and somewhat gaunt, with an expressive, lined face, gray-blue eyes, and...
Money and Finance
Dalio Patched All Weather’s Rate Risk as U.S. Bonds Fell
As the bond market plunged in late June, Ray Dalio convened the clients of Bridgewater Associates LP, the world’s largest hedge-fund manager, to tell them that a fund designed to withstand a broad range of market scenarios was too vulnerable to changes in interest rates.
Bridgewater, citing months of study, said it had underestimated the interest-rate sensitivity of various assets in its All Weather fund and was taking steps to mitigate the risk, according to clients who listened to or read a transcript of the June 24 call. By the end of the month, the Westport, Connecticut-based firm had sold off enough Treasuries and inflation-linked bonds to help reduce the fund’s most rate-sensitive assets by $37 billion, according to fund documents and data provided by investors.
The move, disclosed to investors five days after the Federal Reserve said it’s prepared to phase out its unprecedented bond purchases, was unusual for the fund. As its name suggests, All Weather is designed to produce returns in most economic environments and avoid altering asset allocations when the outlook changes. All Weather incurred a second-quarter loss of 8.4 percent that was primarily tied to its $56 billion portfolio of inflation-linked debt, said the clients, who asked not to be named because the fund is private.
- The Soul Of A Hedge Fund 'machine'
Link to: The Soul of a Hedge Fund 'Machine' The Bridgewater founder talks about how his firm measures employees and economies to steer its $160 billion in investments. How do you build the world's largest hedge fund? Bridgewater...
- Berkshire Avoids Rout As Buffett Sidesteps Bonds
Warren Buffett’s preference for buying stocks and whole companies rather than bonds is helping Berkshire Hathaway Inc. (BRK/A) weather a spike in interest rates better than other insurers. Book value rose 2 percent to about $122,900 per Class A share...
- The Billionaire Ray-man Who Plays By His Own Rules
Never say anything about a person you wouldn’t say to him directly. If you do, you’re a slimy weasel.” So runs principle 11 of Ray Dalio’s guidelines to life: part self-help guide, part radical philosophy, part club-house rules. And the blueprint...
- In Punishing Year For Hedge Funds, Biggest One Thrived
Found via ValueWalk. The world’s biggest hedge fund is also one of the best performers. Bridgewater Associates, which manages nearly $120 billion, posted returns of 23 percent in 2011 — a year when the average hedge fund portfolio lost 5 percent....
- Mastering The Machine - By John Cassidy
How Ray Dalio built the world’s richest and strangest hedge fund. Ray Dalio, the sixty-one-year-old founder of Bridgewater Associates, the world’s biggest hedge fund, is tall and somewhat gaunt, with an expressive, lined face, gray-blue eyes, and...