Ray Dalio Doesn’t Have To Be Right For Bridgewater To Make Money

The Hyenas of Westport had a quarter.
Ray Dalio (Getty Images)

Ray Dalio (Getty Images)

“It is OK to Make Mistakes.” It says so right there in Principle no. 8. “Innovative thinkers are going to make mistakes,” adds no. 9. “Do not feel bad about your mistakes or those of others,” teaches no. 10, which goes on to urge you to “Love them!” The mistakes, that is.

And why wouldn’t Ray Dalio love mistakes? This most innovative of thinkers has been making a bunch of them lately. Guess what? Doesn’t matter: Bridgewater’s doing fine in spite of them. Or is it because of them? I really need to get in synch.

The investment firm has gained about 4 percent in its Pure Alpha fund in the first four months of this year after a 1 percent loss last month, the person said, asking not to be identified because the information is private. Hedge funds on average returned about 0.3 percent during the first four months of 2018, according to Eurekahedge….

Separately, Bridgewater’s disclosed shorts against European stocks have now declined by 80 percent from February to just over $4 billion… The fund made money trading developed-market currencies and rates trading in April, while losing money on its equities and emerging-market currency bets, a second person said. The strategy has also reduced its net long bets on U.S. equities to about 10 percent of assets from 120 percent earlier this year, that person said. Overall, the fund is net short equities, meaning it expects the value of shares to decline.

Bridgewater Hedge Fund Beats Peers, Cuts Europe Shorts [Bloomberg]