From Bloomberg via Advisor Perspectives:
A California county’s $21 billion pension is considering whether to drop Ray Dalio’s hedge fund after it underperformed for most of the past 16 years.
The Orange County Employees Retirement System’s investment in Bridgewater Associates’s Pure Alpha fund has returned an annualized 4.5% since 2005, about 2.5 percentage points less than its benchmark, according to a memo seen by Bloomberg from Meketa Investment Group, the pension’s consultant. The strategy has topped OCERS’s target only once in the past five years and has trailed on a seven- and 10-year time horizon.
Molly Murphy, the pension’s chief investment officer, recommended placing Bridgewater Pure Alpha on the pension’s watch list. A group of Meketa consultants concurred, adding that they would “evaluate potential replacements if needed,” according to the Aug. 25 memo.
While the $175 million that Bridgewater oversees for OCERS is a fraction of the roughly $105 billion it manages in hedge funds, Meketa’s recommendation to put the longtime stake on watch could cause other clients to exit. Meketa is one of the larger investment consultants, with $1.6 trillion under advisory.....
....MUCH MORE
Sixteen years is a long time to wait. Related:
"Is Dalio's Bridgewater A Fraud? Here Are The Troubling Questions Posed By Jim Grant"—UPDATED II
"Inaccurate and Misinformed: Bridgewater Hits Back at Jim Grant Attack"
"What in God’s Name Is Happening at the World’s Largest Hedge Fund?"
March 4, 2019
Bridgewater's Dalio Cuts His Odds of a Recession Occurring Before the Next U.S. Presidential Election.
Our bet, from two years ago had the U.S. stock market peaking this year and a recession to follow in 2020.
We'll be revisiting that prognostication....
Speaking of China, Bridgewater's Ray Dalio Has Some Thoughts
"Why Ray Dalio is wrong about China"
No, not because of "Chinese Hedge Fund Jumps 258% After Dumping Ray Dalio’s Strategy"
I say escapee because Bridgewater Associates always seemed a bit whack and I don't think they would have kept me around for very long. However, it is hard to fault Mr. Dalio's career trajectory: Marry a Vanderbilt/Whitney heiress, trade commodities for a couple wirehouses, set up your own operation, become the largest hedge fund in the world, pontificate from on top of your $21 billion personal pile.
Not knowing Mr. Klein, he might have fit right in but for some reason I think maybe not.
And many more , use the search blog box if interested.
