Ray Dalio: the seer blindsided by a bug

When the financial crisis struck in 2008, Ray Dalio’s hedge fund was well prepared to profit and he has since enjoyed a reputation for prescience. He was, he admits, not so fortunate this time round.

Ray Dalio © Getty

“It’s never easy to admit that you’re wrong, especially when you have previously earned fame (and billions of dollars) by calling the future right,” says Gillian Tett in the Financial Times. Yet Ray Dalio has done just that. The founder of the world’s largest hedge fund, Bridgewater Associates, with a personal fortune previously estimated at £18bn, concedes he was badly wrong-footed by the coronavirus market turmoil – “in sharp contrast to the 2008 financial crisis, when he and his team predicted events with such prescience that they profited handsomely”. This time around, Dalio’s $160bn flagship fund is down by about 20% because, as he admits, Bridgewater’s analytic systems couldn’t “offer any guidance” about a rare event such as a pandemic.

A Young Turk humbled

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Jane writes profiles for MoneyWeek and is city editor of The Week. A former British Society of Magazine Editors editor of the year, she cut her teeth in journalism editing The Daily Telegraph’s Letters page and writing gossip for the London Evening Standard – while contributing to a kaleidoscopic range of business magazines including Personnel Today, Edge, Microscope, Computing, PC Business World, and Business & Finance.

She has edited corporate publications for accountants BDO, business psychologists YSC Consulting, and the law firm Stephenson Harwood – also enjoying a stint as a researcher for the due diligence department of a global risk advisory firm.

Her sole book to date, Stay or Go? (2016), rehearsed the arguments on both sides of the EU referendum.

She lives in north London, has a degree in modern history from Trinity College, Oxford, and is currently learning to play the drums.