Occupation: hedge fund manager
Birthday: August 8, 1949
Birthplace: New York City, U.S
Birth Sign: Leo
Raymond Thomas Dalio is a hedge fund manager, who founded, Bridgewater Associates, since 1985. Dalio is one of the greatest innovators in the finance world, having popularized commonly used practices, such as risk parity, currency overlay, portable alpha and global inflation-indexed bond management.
Ray Dalio Career
Dalio was born in theNew York City’s Queens borough to a Jazz musician and a homemaker. As a kid, Dalio had various odd jobs, including mowing lawns, shoveling snow, and a paper route. At age 12, he started caddying at The Links Golf Club for many Wall Street professionals including Wall Street veteran George Leib. Leib would invite Dalio to their Park Avenue apartment for family dinners and holiday gatherings. Dalio began investing at the same age, when he bought shares of Northeast Airlines for $300 and tripled his investment after the airline merged with another company. By the time he reached high school, Dalio had built up an investment portfolio of several thousand dollars. He saw school as repetitive and monotonous with no practical applications.
Bridgewater Associates 1
After his first year of graduate school at Harvard, Dalio and his friends created the company that later became Bridgewater Associates which started out trading commodities. However they lacked experience and the venture failed.
After graduating from Harvard, Dalio and his family moved to Connecticut, where he lived and traded out of a converted barn. Dalio later worked on the floor of the New York Stock Exchange and traded commodity futures eventually becoming a director at Dominick & Dominick LLC and also worked for Shearson Hayden.
Bridgewater Associates 2
With this capital leftover from his previous job, he was able to scrape together the beginnings of his asset management fund. In 1975, once again founded Bridgewater Associates, this time out of his two-bedroom New York City apartment. Bridgewater started out as a wealth advisory firm, focusing on currencies and interest rates. Dalio’s big break came when McDonald’s signed on as a client of his firm after chich Bridgewater began to grow rapidly. The firm soon signed on larger clients, including the pension funds for the World Bank and Eastman Kodak. Dalio started to become well-known outside of Wall Street after turning a profit from the 1987 stock market crash. In 1991, he launched Bridgewater’s flagship strategy, “Pure Alpha”, which represents the idea that a money manager can earn above a particular market benchmark, such as the NASDAQ. In 1996, Dalio launched All Weather, a fund that pioneered and popularized risk parity.
Bridgewater Associates became the world’s largest hedge fund in 2005 and by 2005, Dalio was managing money for extremely large entities, including the California Public Employees’ Retirement System, the Pennsylvania State Employees’ Retirement System, and Melbourne-based National Australia Bank.
Due to Dalio’s research, Bridgewater’s Pure Alpha fund avoided much of the 2008 stock market crash by going long on Treasury bonds and shorting the dollar and buying gold. His Pure Alpha fund returned 9.5% that year.
Net Worth: $15.6 billion
Dalio is the founder of Bridgewater Associates, a hedge fund firm which manages $150 billion. The company’s clients include endowments, governments, foundations, pensions and sovereign wealth funds.