Ray Dalio and Bridgewater became mous after they made big money in the 2008 financial crisis when most other players lost. As the author of the best-selling books Principles and Principles for Navigating Big Debt Crises, and known for his participation in Chinas economic development over the last several decades, Dalio has a loyal following in China as well.
I can assure you this is completely wrong. All is well at Bridgewater, Dalio said on Chinas Twitter-like Weibo, appending the daily observations note that he sent to clients earlier that day, which he hoped could clarify on the current cts.
Dalio said in the Weibo post that rumor mongers will make dangerous situations like the coronavirus pandemic even deadlier, and they should be found out and punished. Bridgewater may publicly take legal action against the bricators, whom they believed they might have found.
Earlier on the day, rumors were spreading widely on Chinas social media that funds managed by Bridgewater have blown up, and the firms largest limited partner was considering redemption. The rumor garnered wide attention of A-shares investors, so that many believed it led to a plunge in the A-share market in the afternoon trading of the day, said a research analysts.
So r the losses are limited to tolerable numbers as the mechanism has been working as designed, Dalio said, adding that Bridgewater remains liquid and can adjust its positions to give clients liquidity.
Dalio said the performance is not what he would want, but is consistent with what he would have expected under the circumstances, referring to the volatile global financial markets which had seen multiple trading halts in the last two weeks.
The note revealed that eight funds under Bridgewater had seen declines of between 7 percent and 21 percent this year through March 16.
Specifically, the All Weather 12% volatility risk parity fund fell about 14 percent; the Pure Alpha 18% volatility fund fell about 21 percent; its Optimal Portfolio 10% volatility fund was down about 18 percent.
Mar. 19 (NBD)– Billionaire investor Ray Dalio Wednesday night denied a blow-up rumor about Bridgewater Associates LP (Bridgewater), the worlds biggest hedge fund firm under Dalios leadership, adding that the firm may take legal actions against the scaremongers.
Dalio also said Bridgewater started tracking the coronavirus outbreak in January, and the hedge fund firm has its normal risk control mechanism to handle these big unknown risks.
Many people left supportive comments under the Weibo post. No one who read the two books carefully would believe this rumor, one said.