1. Bridgewater Associates
Ashwin Ananth, Frederico Carniero Mira Godinho, Joseph Clark, Michael Haslett, Jiani He, Lanyu Liu, Jinghan Zhang

2. Agenda Overview History and Milestones Products and Services
Strategies
Management Principles and Management Structure
Financial Performance
Future Plans
Conclusion

3. Overview World’s largest macro hedge fund AUM: US$ 169 billion
Institutional Clients
Governments and Central Banks
Pension Funds
Endowments – Univ. and charitable
Founder Ray Dalio
Innovative quantitative strategies
Unique management philosophy
HQ: Westport, CT
Ray Dalio

4. History and Milestones
Founded by Ray Dalio in his Manhattan apartment
Launched its All Weather fund β
Turn to Money Management of institutional investors
Largest hedge fund firm in the world
1975
1980
1985
1991
1996
2006
2009
2014
Daily Observations
Launched its Pure Alpha fund α
Founded the Bridgewater Optimal Portfolio
Complete focus on alternative strategies

5. Awards and Achievements
“Global Investor for Excellence Global Bonds”
“Best Performing Global Bond Manager"
“Lifetime Achievement Award”
“World’s Top Hedge Fund”
2000
2002
2003
2004
2006
2009
2011
“Currency Overlay Manager of the Year”
“Industry’s Lifetime Achievement”
“World’s Best Money Manager”

6. Products and Services Pure Alpha (2 and 20 pricing) All Weather
Flagship fund
Portable Alpha-based strategy
Pure Alpha Major Markets
Largest hedge fund launch at US $7.5 billion (2011)
Alpha-based strategy, but higher liquidity using shorter-term debt
All Weather
Low fees, global portfolio
Primarily fixed income and currency positions
Seeks to match overall market return (β)
Daily Observations
First product offered
Readers include: Barack Obama, International Central Bank leaders

7. General Strategy Ray Dalio Full agreement: Dalio, Jensen, and Price
Macro Economist who invests in Bonds
Doesn’t trust one commodity or market
Keeps a spread across asset classes and countries
Consistent hitter of singles and doubles – no big bets
Full agreement: Dalio, Jensen, and Price
Driven by rules-based framework
Broadly: Illiquid positions / uncorrelated investments
Decrease correlation by risk diversification, not asset diversification
Focus on Buyers and Sellers
Macro approach to research

8. Pure Alpha Strategy Pure Alpha fund Portable Alpha strategy
Eliminating beta (market risk) across a portfolio of 30 to 40 positions
Active management with daily assessment and trades

9. Management Principles and Management Structure
Culture
Founder’s Basic Principles
Management Principles
Management Structure:
Horizontal structure

10. Culture Basic Principles
Reality + Dreams + Determination = A Successful Life
Pain + Reflection = Progress
The quality of our lives depends on the quality of the decisions we make
to work for yourself
to come up with independent opinions
to stress-test them
to be wary about being overconfident
to reflect on the consequences of your decisions and constantly improve
 Truth and excellence  constant improvement
“Radical transparency”
Assertive, open-minded, innovative

11. Management Principles
Great culture + Great people
How to achieve
the goals  Culture
Organizations are like individuals
How they choose to approach these impediments determines hoe fast they can move towards their goals.
Organization is like a machine—Feedback Loop
Produces outcomes
Compare results to the goals
Assess and improve how it works

12. Horizontal Corporate Structure
Well-trained workers will be more productive -- more directly involved in the decision making process
Comments and feedback are more efficient
Has few or no levels of middle management between staff and executives
Aims to remove the barriers associated with traditional asset management firms, and qualities like stodginess and risk-aversion are discouraged

13. Major Players
Source: IBISWorld

14. Financial Performance
Source: IBISWorld

15. Financial Performance
Source: IBISWorld

16. Future Plans
Algorithm trading
Start the artificial-intelligence team

17. Thank you!
To make money in the markets, you have to think independently and be humble. You have to be an independent thinker because you can’t make money agreeing with the consensus view, which is already embedded in the price. Yet whenever you’re betting against the consensus, there’s a significant probability you’re going to be wrong, so you have to be humble.
@RayDalio