Ray Dalio’s Flagship Fund Wrong-Footed By Rates Bets, Falls 6%: Report
If you ask "a person familiar with the matter", Bridgewater's Pure Alpha fund is down 6% YTD through last week thanks to bearish bets on global rates at a time when bond yields have tumbled to record lows.
Pure Alpha II, a version that employs more leverage, is down 9% YTD, according to Bloomberg.
"Monetary Policy doesn’t work effectively because interest rates get so low that lowering them enough to stimulate growth doesn’t work well", Dalio said Wednesday, in a ~1,600-word essay document
Rational explanations don’t work well in this market when the major political players all use market performance as a primary criteria for their actions….Charlie McElligott , I’ll give him credit , has found a way to Navigate this environment as least for now ( never forever though)
Thanks for this article. I must say, this makes me quite happy with myself, because I’m down 6% too in my first year of trading, and sometimes It’s easy to forget its not just you as an individual struggling in the current market. When the market has moved decently over the past few months, I always feel I’m the only sucker on the wrong side of it.
Raaaaay… the next time Bill Gross calls and suggests that you short Bunds, just hang up the phone!
LOL. this is a good one.
He must not have bought enough gold.
Am I the only one who laughed aloud at that comment?
Yes!
I may be misunderstanding something, but doesn’t bearish bets on rates indicate that he was on the right side of the trade, as rates have trended lower in many parts of the world? Or does that term convey that he was bearish on bonds?
bearish rates = betting bonds selloff