Bridgewater

Ray Dalio Warns We May Be On A Path To "Dictatorships And Wars"

"There are times when politics becomes the most important driver...  In some cases it led to democracies becoming dictatorships, and wars. I am not saying that we are on that path, but I am saying that it has to be watched out for because if it is in the works, it is a really big deal."

Jeff Ubben Steps Down As ValueAct Investment Head

Jeff Ubben, the activist investor who built the iconic ValueAct hedge fund into a $16bn powerhouse, is stepping down from daily oversight of its portfolio and handing the reins to his protégé, Mason Morfit, the FT reports.

 

Is Risk Parity Driving The Market?

"The risk in the market is not to increasing volatility but something that changes the relationship to stocks and bonds that causes them to both drop..."

Ray Dalio Goes Dr. Doom: "When The Next Downturn Comes, It’s Going To Be Bad"

"we fear that whatever the magnitude of the downturn that eventually comes, whenever it eventually comes, it will likely produce much greater social and political conflict than currently exists.  The idea of conflicts getting even worse in a downturn is scary.  When the next downturn comes, it’s probably going to be bad."

Pondering The Real Perils Of Risk Parity Portfolios

Following Paul Tudor Jones "terrifying" stock market comments last week, we explain why Jones might be wrong, not about risk parity causing a market dislocation, but instead the market in which risk parity will cause problems.

Study Finds That Populist Leaders Generate 'Yuge' Equity Rallies Averaging 150% Over 3 Years

"If the last two decades of anti-establishment rule are any guide, the world may be on the brink of some monster stock rallies as it takes a turn toward populism.  A look at 10 of the 21st century’s most recognized populist leaders shows that in the three years after their election, local equities soared an average of 155 percent in dollar terms. And the rallies often continued as long as a decade after the vote."

Which Hedge Funds Are The Biggest Holders Of ETFs

Despite complaints by hedge funds that ETFs are eating their lunch (and dinner), an interesting observation emerged in a new reported from Deutsche Bank: Hedge Funds are allocating increasingly more capital toward ETFs. This post shows why, and who are the 20 hedge funds with the highest ETF investments.