Ray Dalio Apostles Give Up The Ghost

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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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