Dalio Says Bridgewater Like An 'Intellectual Navy SEALs'

Jan 31 2014 | 12:41pm ET

Bridgewater Associates founder Ray Dalio took his gospel of radical transparency to the mainstream this week, with an appearance on "CBS This Morning."

The hedge fund billionaire sought to explain his "principles" and their controversial application at Bridgewater.

"What we do is we step back and we get to basically the fundamentals of how people think differently," Dalio told Charlie Rose. "What people are good or bad at. What they're like. We get at what they're like. And then what to do about that. It's like going into an intellectual Navy SEALs. That's what the experience is like, and the key question is, can you get over the ego barrier? Can you just find out what's true?"

Pressed on his own ego or lack thereof, Dalio acknowledged that, as Rose put it, wanting "to be the biggest and best hedge fund" and saying "I have defined the economic machine, which is the way the economies of the world work," could be thought of "as motivated by ego."

Dalio, however, prefers to think of it as altruism.

"Somebody in my position could say, 'OK, no,'" he's not going to share his insights, Dalio said. "But I'm saying that I'm 64 years old. I don't want to have fears… of being open. In other words, I'm not going to let a fear stand in the way of something that I believe is valuable."

Dalio also touched on the growing income gap, warning that it is only going to get worse.

"It's mostly a function of technology in a global workplace," he said. "In other words, technology is having an effect on that productivity that means you don't need people the same way that you did before."


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.