Here’s the best news about Ray Dalio’s enormous 31% returns through August this year – they just made the billionaire hedge fund manager a billionaire all over again.
Dalio made about $2.6 billion in 8 months on those returns, assuming he wasn’t below his high water mark.
Here’s how we calculated that.
So the Alpha Strategy managed about $43 billion at the beginning of the year. Through insane 31% returns on investments, about which we know nothing, Dalio increased that $43 billion by $13 billion to bring Alpha’s AUM to $56 billion by the end of September.
Dalio takes home at least 20% on the profits he makes for Bridgewater’s investors.
20 per cent of $13 billion is $2.6 billion.
That’s good news for Connecticut, which is in massive debt this year and could use the ~$1 billion they should make off Dalio’s taxes. And it’s good news for the market and other investors out there. Clearly there are profits to be made, somewhere.