Select Page

Ray Dalio’s Flagship Pure Alpha Fund Fails To Claw Back Losses

Ray Dalio’s Flagship Pure Alpha Fund Fails To Claw Back Losses

Hedge fund billionaire Ray Dalio’s top fund missed out on the rebound in Sept. after it suffered losses in Aug. when positioning of the fund was caught offsides when government bond yields across the world plunged on trade war escalations between the US and China, reported the Financial Times

The Pure Alpha fund at Bridgewater, manged by Dalio and his associates, lost 2.30% in the nine months ended in Sept., mostly due to incorrect positioning in Aug. as government bond yields plunged worldwide, in some cases, mainly in Europe and Japan, went deeper into negative territory.

The fund is underperforming the market and peers in 2019, during the same period last year, Pure Alpha was up 6.40%.

In Sept., the fund clawed back some of its loses when it soared 3.80%, but fell again by .50% in early Oct. as market turmoil was seen.

Considering all the trade optimism President Trump has pumped into markets via tweets, Dalio’s fund has still managed to print a dismal YTD, down 2.74%.

Dalio delivered superstar returns last year, after fund fees, investors made 14.60%. 

Dalio, like many other money managers, are underperforming this year thanks to chaotic trade developments on a tweet by tweet basis. This has caused Pure Alpha to deliver one of its worst first halves in nearly two decades as it recorded 4.90% losses.

In a CNBC interview in Aug., Dalio said there’s a 40% chance of a recession in the next 24 months. He warned that central banks are out of ammo, something we outlined in the last several days. 

Dalio has since lowered his recession forecast to 25% but continues to pitch the idea that a repeat of 1937 turmoil is dead ahead. 

Last Thursday, Dalio reconfirmed his 1930s bearish apocalyptic view at the IMF and World Bank annual meetings in Washington, DC.

He told investors at the conference: “This cycle is fading, we are now in the world in what I would call a ‘great sag,'” adding that monetary policy is less effective than ever before.

Dalio’s passively managed All-Weather fund, which performs reasonably well during periods of elevated volatility, was up 13.60% for the nine months ended in Sept.

 


Tyler Durden

Tue, 10/22/2019 – 19:45


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Welcome

Bringing together a variety of news and information from some of today’s most important libertarian thought leaders. All feeds are checked and refreshed every hour and pages auto-refresh every 15 minutes. External images are deleted after 30 days.

Time since last refresh: 0 second

Publish Your Own Article

Follow The Libertarian Hub

 

Support Our Work

Support the Libertarian Hub by tipping with Bitcoin!

Send BTC:
19PU2K7448gKxAvisR5cF6X5RquYfWu5vZ

Weekly Newsletter

Newsletter Signup

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!

Weekly Newsletter SignupTop 5 Stories of the Week

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!