For years, Dalio has ran a Blackbox operation over his firms culture and management style. The truth is that he has a Blackbox that runs the show and the people, mere camouflage. VERY smart camouflage! Genius mathematicians, physicist, heck, rocket scientist paid VERY well to serve as window dressing giving illusion that more than JUST A COMPUTER contributes alpha. Rumor has it, Dalio who looks to cash out in the near future, hires grade A talent to strengthen the firms valuation when he decides to…… Maybe that’s why Dalio, in 2011, stepped out of his computer and in to the public eye. ;) wink wink. At nearly 80Bn AUM, we still think hes cute. Sociopath or not…. hh
One sender wrote:
“I was a former employee, hired to restructure the trading platform but after day 48 of listening to the mandatory morning brainwash tapes I asked Ray how long this would continue? I was told to leave for the day and upon returning my access had been revoked.“
“Dalio’s shop reminds me of Military mind fucking. Sure they’re smart, going in, a couple of years working for Dalio and the only skill they acquired- Coordinating the firms lunch menu. True story!” Says former Marine and 18-year veteran hedge fund recruiter who asked to remain anonymous.
Until now, the little has been known about the life within Rays Fortress of secrecy. A Former employee tells it all.
Bridgewater sucks for promising young traders, indoctrinates them, and then makes them totally useless for any place except Bridgewater. Most of (if not all) their work is irrelevant to how it really operates.
Just like in “The Wizard of Oz”, there is someone or something ( Blackbox) behind the curtain driving the process.
Like a lot of hedge funds, it requires its employees to sign nondisclosure agreements designed to keep everything under wraps. Even more Paranoid is constant monitoring of all e-mails and phone calls and keeping tabs on employees via a network of overhead cameras. The very first thing a new hire gets is the copy of Principles
Many hedge-fund managers spend days and night monitoring movements in the markets. Not Dalio.
He spent most of his time trying to figure out how economic and financial events fit together in a coherent framework. Wrote out all possible scenarios (in macro investing there is only so many) and made a Blackbox. Dalio translates his insights into algorithms and then has a powerful computer system scour dozens of markets around the world looking for mispriced assets and other opportunities. “Almost everything is like a machine, Nature is a machine. The family is a machine. The life cycle is like a machine.” His constant goal, he said, was to understand how the economic machine works.
Taken that under consideration he has designed a Blackbox that executes all the trading.
“There hasn’t been a case in history where they haven’t eventually printed money and devalued their currency,” he has said. Other developed countries, particularly those tied to the euro and thus to the European Central Bank, don’t have the option of printing money and are destined to undergo “classic depressions,” Dalio said. The recent deal to avoid an immediate debt default by Greece didn’t alter his pessimistic view. “People concentrate on the particular thing of the moment, and they forget the larger underlying forces,” he said. “That’s what got us into the debt crisis. It’s just today, today.”
Dalio’s assessment sounded alarmingly plausible. But when one plays the global financial markets a thorough economic analysis is only the first stage of the game. At least as important is getting the timing right.
Dalio believes that some heavily indebted countries, including the United States, will eventually opt for printing money as a way to deal with their debts, which will lead to a collapse in their currency and in their bond markets.