Ray Dalio Apostles Give Up The Ghost

Howard Wang and Robert Wu are ready to face the kind of radical truth that Bridgewater alums are brought up to face: If their new hedge fund, Convoy Investments, is going to post the kind of gains that make it look more like a mutual fund than old Ray in his glory days, they’ll just have to charge clients as though they were a mutual fund. By which they mean: a management fee several times that charged by the average mutual fund, but no performance fee. Oh, and some feel-good pro bono work. Sign up now (especially if you’re not a charitable organization or one of the 100% of U.S. public pensions that are underwater)!

Convoy Investments LLC… isn’t charging a performance fee to investors and only a 1.25 percent management fee….

“Many hedge funds simply repackage or lever cheap benchmark indices and sell it as expensive outperformance,” Wang, 28, said. “While true uncorrelated active management is more valuable than ever, investors need to make sure they are getting what they pay for.”

Ex-Bridgewater Analyst Starts No-Fee Hedge Fund [Bloomberg]

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  1. Posted by Gator Gasbag | August 7, 2014 at 6:03 AM


  2. Posted by Irate guest | August 7, 2014 at 8:32 AM

    Big Ray oughta slap the taste out their mouths. Dude spends years developing a semi decent semi passive quant strategy and some little shit rocks up, copies it and bad mouths him for charging for his talent.

  3. Posted by Mike | September 5, 2014 at 2:54 PM

    So Ray did not come up with Risk Parity. It existed way before Bridgewater started implementing it. Tons of companies are doing it besides BW. They are all charging a flat fee and providing daily liquidity unlike Bridgewater. Not sure why Ray should be mad at these guys, as they are not doing anything new and he is not the owner of that strategy. It's called competition, and it is a pretty good thing and a critical functioning point of capitalism.
    Invesco: <a href="https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB4QFjAA&url=https%3A%2F%2 Fwww.invesco.com%2Fpdf%2FIBRA-PC-1.pdf&ei=iQYKVNutAfDjsATtj4LgCA&usg=AFQjCNHCdciBstMAtW9NhRi4JfR2od9J_g” target=”_blank”>https://www.google.com/url?sa=t&rct=j&q=&amp;…” target=”_blank”>Fwww.invesco.com%2Fpdf%2FIBRA-PC-1.pdf&ei=iQYKVNutAfDjsATtj4LgCA&usg=AFQjCNHCdciBstMAtW9NhRi4JfR2od9J_g
    AQR :https://funds.aqr.com/
    Salient (First Quadrant) :http://www.salientpartners.com/funds/rpf.html

    Don't be a hater.