Dalio’s Investment Advice And Comments On Bridgewater Pure Alpha 2018 Returns

Dalio’s Investment Advice And Comments On Bridgewater Pure Alpha 2018 Returns

Ray Dalio‘s answers questions on investment advice since Bridgewater Pure Alpha Fund made 14.6% last year.

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Q3 hedge fund letters, conference, scoops etc

According To Jim Chanos, This Is The Biggest Story No One Is Talking About

Jim ChanosWhen a liquidity crisis struck China's Evergrande Group in the summer of 2021, it shook the global markets. Debt payments by China's second-largest property developer by sales were estimated in the hundreds of billions of dollars, and the company missed several payments. Those missed payments led to downgrades by international ratings agencies, but the Chinese Read More

In reaction to a lot of press about us (Bridgewater) having made 14.6% in our flagship Pure Alpha fund last year when most investments and investment managers lost money, I’ve been asked for a lot of advice. I regret that I won’t be able to adequately provide it in this limited space (though I will eventually pass along the most important principles in my upcoming Economic & Investment Principles.) But I will pass along one important thought. If you are worried when the stock market goes down and happy when it goes up it probably indicates that your portfolio is unbalanced. If your income is also tied to how the economy does, you are doubly at risk because your portfolio can go down when your income is worst which is scary. Most people and companies are in that position and many make it even riskier by borrowing money to be in that position in an even bigger way. That’s what makes the financial rollercoaster ups and downs so big and dramatic. To me, the key is to not have any systematic biases by structuring your portfolios and your incomes so that they hedge each other and are in balance. Achieving good balance is the most important thing.

Article by Ray Dalio, LinkedIn

Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)www.valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver
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