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...
- Ray Dalio On Cnbc
Link to videos: Dalio on QE3 and US Dollar What Worries Hedge Fund Titan Ray Dalio? Possible Downturn in US Economy: Ray Dalio Sharpening America's Competitive Edge China's Troubles Continue to Plague Investors Hedge Fund Titan Reads Europe's...
- Jack Schwager Summarizing Some Of Ray Dalio’s Thoughts On Diversification And Correlation
Excerpts from Schwager’s book Hedge Fund Market Wizards (also, see a direct quote from Dalio on these topics from the book HERE, under ‘Correlation and diversification’):Dalio is a strong believer in diversification. In fact, he calls the potential...
- Ray Dalio Quote (learn From History)
“If you’re limiting yourself to what you experienced, you are going to be in trouble. . . . I studied the Great Depression. I studied the Weimar Republic. I studied important events that didn’t happen to me.” -Ray Dalio (as quoted by Maneet Ahuja...
- Dalio's World
Found via The Big Picture. Ray Dalio, fabled hedge-fund manager, says the U.S. has done a "beautiful" job delevering, but sees a 30% chance Europe will stumble badly. It's hard to imagine anyone navigating the rough seas of the past decade more ably...
Money and Finance
Ray Dalio on diversification
From Chapter 1 of The Alpha Masters by Maneet Ahuja:
Dalio estimates that if the firm can make money on 60 to 65 percent of its bets in any given year, the odds are very high that the fund will meet its return targets. In 2010, as the D-process continued to unfold, about 80 percent of Dalio’s bets made money.
Bridgewater sees endless opportunities to do this because spreads are uncorrelated. In doing this, the most important rule is not to compare the correlations against each other in a quantitative sense, but according to their drivers.
“But the truth is, as you get to 15 or 20 you start to reach diminishing returns,” says Dalio. “So the issue is, ‘Do you really know what you’re doing? Can you be confident it’s good?’ I used the word good. I didn’t use excellent. Can I be confident it’s good?”
Dalio thinks the best mix of assets is an amalgam of things, and advises to derive your top alpha generators from a combination of currencies, bonds, commodities, stocks, and so on, and calibrate them properly against each other, in terms of their size.
- 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...
- Ray Dalio On Cnbc
Link to videos: Dalio on QE3 and US Dollar What Worries Hedge Fund Titan Ray Dalio? Possible Downturn in US Economy: Ray Dalio Sharpening America's Competitive Edge China's Troubles Continue to Plague Investors Hedge Fund Titan Reads Europe's...
- Jack Schwager Summarizing Some Of Ray Dalio’s Thoughts On Diversification And Correlation
Excerpts from Schwager’s book Hedge Fund Market Wizards (also, see a direct quote from Dalio on these topics from the book HERE, under ‘Correlation and diversification’):Dalio is a strong believer in diversification. In fact, he calls the potential...
- Ray Dalio Quote (learn From History)
“If you’re limiting yourself to what you experienced, you are going to be in trouble. . . . I studied the Great Depression. I studied the Weimar Republic. I studied important events that didn’t happen to me.” -Ray Dalio (as quoted by Maneet Ahuja...
- Dalio's World
Found via The Big Picture. Ray Dalio, fabled hedge-fund manager, says the U.S. has done a "beautiful" job delevering, but sees a 30% chance Europe will stumble badly. It's hard to imagine anyone navigating the rough seas of the past decade more ably...