Ray Dalio clocks sizable losses amount to 20%, particularly in the first quarter of 2020 stock sell-off for his flagship fund.
So Ray Dalio was indeed all in following his cash is trash view back in February when the billionaire investor recommended investor to remain all in, so to speak, in a world of endless central bank quantitative easing.
But in the wake of the pandemic setting off an unstoppable deflationary spiral, characterized by a multi-level crisis, domestic economic disruptions, plummeting external demand, capital flow reversals, and a collapse in commodity prices, in what could be the worse deflationary depression ever, cash is now king.
So Ray Dalio, founder of Bridgewater, the world’s largest hedge fund has been caught wrong-footed as the pandemic hysteria and enforced global lockdowns have provided the pin for the coronabubble burst.
“Ray Dalio clocks sizable losses amount to 20%, particularly in the first quarter of 2020 stock sell-off for his flagship fund”
THE WEALTH TRAINING COMPANY
Ray Dalio clocks sizeable losses amount to 20% for the year were compounded by an abrupt end to the longest secular bull market in stocks, commodities, corporate debt, and real estate
“We did not know how to navigate the virus and chose not to because we didn’t think we had an edge in trading it. So, we stayed in our positions, and in retrospect, we should have cut all risk” said billionaire investor Ray Dalio in a statement to the
“We’re disappointed because we should have made money rather than lost money in this move the way we did in 2008,” said Ray Dalio.
Bridgewater Associates’ Pure Alpha Fund II slashed approximately 13 percent in the first three weeks of April, according to people familiar with its performance.
Ray Dalio’s April losses come following an 8 percent drop in the first two months of the year which puts Ray Dalio’s flagship fund in losses of approximately 20%for the first quarter of 2020.
“We did not know how to navigate the virus and chose not to because we didn’t think we had an edge in trading it. So, we stayed in our positions, and in retrospect, we should have cut all risk”
“Bridgewater Associates manages about $160bn using a pure macro strategy” – The Wealth Training Company
Bridgewater Associates manages about $160bn using a pure macro strategy.
Pure Alpha employs a traditional hedge fund strategy that actively bets on the direction of various securities, including stocks, bonds, commodities, and currencies, by predicting macroeconomic trends. The strategy rewarded investors in 2008, gaining 9.4 percent in a year when the S&P 500 index lost 37 percent. It also outperformed the markets to a lesser degree in 2018. Pure Alpha was largely betting on rising equities and rising Treasury yields entering this month’s market shock said one person briefed on the matter.
Ray Dalio clocks sizeable losses amounting to approximately 20% in the first quarter of 2020
The hedge fund king remained invested at the end of the secular bull market but what is interesting to note is that other titan investors have yet to capitulate, which could mean don’t rule out another nasty drop is stock prices.