Ray Dalio Bridgewater Performance


(Aris David) #1

He’s tipping us about: A portfolio that is market neutral :grinning:… basically low correlation to the entire market/wider economy.

When you’re just starting with small portfolio it’s usually expensive to do the above with traditional brokers. With Freetrade it’ll be cheap!


(Ryan) #2

I saw this news earlier today. 14.6%!

Its funny, early on in 2018 there were people criticising Ray Dalio’s returns relative to the S&P500 and other indexes. His ‘Allweather’ portfolio I guess has shown has powerful it can be, even when seemingly every index is incurring losses! Its a portfolio built to do well under all economic circumstances.

The comment he makes about portfolios being unbalanced is particularly interesting. You’re right, lucky we have Freetrade to edge into the markets slowly, with smaller positions :muscle:


#3

I’ve no idea what the industry’s terms of art for these things are but the term “market neutral” portfolio sounds like something that should deliver the market’s performance, rather than something that manages to hedge against it. I suppose “market indifferent” makes more sense to me as a term. (Though how you achieve that is another question and to my naive mind eventually leads you back to something that looks very mundane and easy, like the traditional 60/40 index/bond portfolio or whatever.) Anyway.

Balancing/hedging your portfolio and income seems a very sensible idea. Evaluate and adjust risk across your life, not just your portfolio. If you work at a startup, consider taking a bit less risk in your pension fund, and so on.


(Alex Sherwood) #4

Here’s some more coverage about this for FT subscribers -

https://www.ft.com/content/5570b142-1203-11e9-a581-4ff78404524e