Home / Business / Ray Dalio and his Bridgewater suffer from the biggest crisis in ten years: What happens to the king of mutual funds?

Ray Dalio and his Bridgewater suffer from the biggest crisis in ten years: What happens to the king of mutual funds?



Investors pulled out $ 3.5 billion in the first seven months of the year, and this seems only to be the beginning.

The king of mutual funds, Ray Dalio, is in trouble. His company, Bridgewater, which manages $ 148 billion in assets, is suffering from the worst crisis of the last decade, reports Bloomberg.

It wasn’t until August that the company’s flagship fund, Pure Alpha II, suffered a decrease of 18.6%Competitors such as Caxton Associates and Brevan Howard Asset Management achieved significant gains over the same period.

However, these losses are just another problem with Bridgewater. For the second year in a row, computer models have misinterpreted the markets. The company reduced risk in March after equity markets fell with the start of the pandemic, but by the time it was about to jump on the rally it was too late.

All of this drove his large clients to withdraw their money. Investors pulled out $ 3.5 billion in the first seven months of the year, and this might just be the beginning. Dalio also fired dozens of his employees and lost an argument with his former employees.

Bridgewater worked to change the models by adapting the strategies they believed worked. Dalio himself rose 70 hours a week Solve problems, such a person close to the company, but the situation has not improved.

However, Dalio continues to defend Bridgewater and is confident in his abilities. “We̵

7;re the biggest mutual fund for something. We’ve never had a bad year, everyone was positive, but we knew that day was coming. We lost the evolution of the pandemic and that’s the reality, “the billionaire admitted in an interview with Bloomberg, in which he stressed that the fund continues to function as before.


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