Silver as an investment

Category Archives: Pure Alpha

Is Bridgewater A Fraud? Here Are The Troubling Questions Posed By Jim Grant

Jim Grant, author of Grant’s Interest Rate Observer, first hinted last week that not all is well when it comes to the world’s biggest hedge fund, Ray Dalio’s $160 billion Bridgewater (of which one half is the world’s biggest risk-parity juggernaut). Speaking to Bloomberg last week, Grant said he was “bearish” on Bridgewater because founder […]

World’s Largest Hedge Fund Stumbles: Bridgewater Pure Alpha Loses Over 6% In June; Down 14% YTD

Back in February, when the market was hitting its 2016 lows, we reported that not all was well in the “risk parity” world of the world’s largest hedge fund Bridgewater. As we reported then, citing sources, the fund had lost over 4% in the subsequent week ending February 5 when it was suddenly down 3.8% […]

World’s Largest Hedge Fund In Trouble? Bridgewater Pure Alpha Loses Over 10% In Two Weeks

In the days after the August 24 ETFlash crash, the world’s “risk parity” funds had a near-death experience when as a result of the furious disconnect between stocks, Treasurys and most other asset classes, the underlying correlation models failed, leading to dramatic declines for such giant funds as Bridgewater’s $70 billion “All Weather” fund. For […]

“We’re All Dr.Evil Now”

Submitted by Ben Hunt via Salient Partners' Epsilon Theory blog, DIY’s newest frontier is algorithmic trading. Spurred on by their own curiosity and coached by hobbyist groups and online courses, thousands of day-trading tinkerers are writing up their own trading software and turning it loose on the markets. Interactive Brokers Group actively solicits at-home algorithmic […]

This Is The Most Profitable “Strategy” Of The World’s Biggest Hedge Fund In The Past Decade

There is a reason why Bridgewater is the world’s biggest hedge fund with $171 billion in assets: it generally, and consistently, tends to generate more alpha than its competitors. Granted, there was the whole “beautiful deleveraging” phase (just ask Greece how that worked out), and the fact is that risk parity is just a ticking […]

Did The World’s Biggest Hedge Fund Just Go “All In” On HFT And Dark Pools?

Is the world’s biggest hedge fund going all-in on HFT and Dark Pools? We ask because Ray Dalio’s Westport, CT-based Bridgewater, which at last check manages around $160 billion between its Pure Alpha and All Weather fund products, and which according to preliminary data had a solid performance in 2014, has just hired Jose Marques, […]

Anthony “@Hedgieguy” Davian Pleads Guilty To Fraud

Last August we presented the story of a very sad and misguided individual, one Athony Davian, who was then the first person charged with running a ponzi scheme off twitter. Specifically, we said: Once upon a time there was a Twitter-based, pump-and-dumping daytrading bucket shop posing as a “successful hedge fund manager” also known as […]

When Risk Is Not In Parity: Bridgewater’s Massive “All Weather” Fund Ends 2013 Down 3.9%

Just over a year ago, in one simple graphic, we showed why Bridgewater, which currently manages around $150 billion, is the world’s biggest hedge fund. Quite simply, its flagship $80 billion Pure Alpha strategy had generated a 16% annualized return since inception in 1991, with a modest 11% standard deviation – returns that even Bernie […]

Ray Dalio’s Equity And Rates Exposure Summary

Previously we presented Ray Dalio’s macro exposure by way of Bridgewater’s Pure Alpha FX positions as of May 31. Now, we show  the big one: the fund’s exposure in equities and rates. With 12% net exposure in the US and 7% in EM, one can see why for the past 6 months Dalio has been […]

Bridgewater “Pure Alpha” Global FX Exposure Summary

Curious how the world’s biggest hedge fund (specifically its “Pure Alpha” not the beta-chasing “All Weather” strategy) is positioned in FX? Then you are in luck. Below are Bridgewater’s net exposures in various currencies as of May 31 (we will show a broader asset distribution shortly). In brief: big short bets in EUR, JPY and […]