Ray Dalio’s hedge fund, Bridgewater, is up 31% this year in its Alpha Strategy, a source told Financial News.
So $56 billion is up 31% this year. Whoa.
Unfortunately, the fund’s co-chief investment officer, Bob Prince, doesn’t go into detail about where these returns came from.
We just know more than other people, he explains. Seriously.
He conceded that some might find this difficult to believe, but he said: “It’s not unlikely that we would know more about a lot of things than anyone else.”
Prince also told Financial News that they use algorithms.
“Once we understand how the machine works, we can decide how to make money from it. We are systemised, so it’s all programmed into a computer.
“Fundamental global macro managers look at causal relationships, but they don’t look into the cause and the effect like we do, and they don’t use diversification, they have two or three themes. We want diversity, so we have a lot of betting strategies. We trade on about a hundred markets.”
That’s it. So we know Bridgewater is killing it this year, but have absolutely no idea how they’re doing it.