Thread: Dalio caught flat-footed with big losses at Bridgewater fund

Macro Fund plunged 20%. He was saying cash is trash just one month ago.

https://www.bloomberg.com/news/artic...-market-tanked

“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,” Mr Dalio said in a statement to the Financial Times. “We’re disappointed because we should have made money rather than lost money in this move the way we did in 2008.”

Pure Alpha was largely betting on rising equities and rising Treasury yields entering this month’s market shock, one person briefed on the matter said. It also held put options on stock indices, which helped cushion the losses, the person said. Bridgewater has yet to release figures through the end of the week.

SP500 surged 29% in 2019, I'm not impressed by a 16% gain.

Last year, the Pure Alpha strategy was essentially flat, while Bridgewater’s All Weather fund, which uses a “risk parity” strategy that attempts to balance risk across a variety of asset classes throughout various market conditions, gained more than 16 per cent.

Do the math. If you lose 23% and then gain 9%, it doesn't mean you're only down 14%.

The S&P 500 index was down 23 per cent this year through Thursday but rallied more than 9 per cent on Friday.

https://www.ft.com/content/6addc002-...d-da70cff6e4d3