Saturday, 25 October 2014
Last updated 1 day ago
Dec 17 2012 | 12:06pm ET
The only thing between Bridgewater Associates and its first down year in more than a decade is December.
The world's largest hedge fund's largest hedge fund is down 0.5% through the first 11 months of the year. Unless it can make some gains this month, Pure Alpha II will suffer its first losing year since 2000, following two years in which it posted double-digit gains.
Much of the $120 billion firm's troubles stem from its early-year faith in the U.S. dollar, which, despite Bridgewater's bullish bet, lost ground against both the euro and the Japanes yen.
Perhaps unsurprisingly, given his fondness for transcendental meditation, Bridgewater founder Ray Dalio was philosophical about the turn in his fortune, telling a conference last week, that he was "probably due." He also paraphrased former U.S. Treasury Sec. Edgar Fiedler, saying, "He who lives by the crystal ball is destined to eat ground glass."
No matter what happens this month, however, Dalio's crystal ball says next year should be better, the New York Post reports.
Bridgewater will bet that interest rates will rise in late 2013. "The biggest opportunity will be shorting bond markets around the world," he said.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.