Bridgewater Associates

December 10, 2021

Ray Dalio says China is winning the economic race against the US, as the billionaire investor doubles down on controversial stance

Billionaire investor Ray Dalio has said China is winning the economic race against the US.
The hedge fund titan told the BBC that China would likely become “stronger in most ways.”
Dalio has caused controversy for his remarks on China, drawing criticism from Senator Mitt Romney.

Billionaire investor Ray Dalio has said China is winning the economic competition against the US, doubling down on his controversial stance on the country.

Asked on the BBC’s “Newsnight” program Thursday whether China was beating the US, Dalio said: “Yes, it’s winning.”

He added: “Their growth rate at a slow level is about twice the Western world’s growth rate at a fast level.”

The hedge fund titan also predicted the Chinese economy would overtake the US in size to become much more powerful.

“[China is] four times the size population-wise [than] the United States,” he told the BBC. “So if its per capita income was half the size, the [economy] as a whole would be twice the size.

“So yes, that’s the character of the environment where it’s winning and it has a lot more likelihood of being much larger, stronger in most ways.”

Dalio founded, and is now the chief investment officer of Bridgewater Associates, the biggest hedge fund in the world. His net worth is $20 billion, according to Forbes.

The famous investor has waded into controversy over China, with critics accusing him of ignoring the human rights issues in a country in which he has significant financial interests. The Wall Street Journal has reported that Dalio recently raised $1.3 billion for its third China fund.

Dalio found himself in the spotlight last month after likening Beijing to strict parents, when asked by CNBC’s Andrew Ross Sorkin about the country’s human rights record and the disappearance from public view of tennis player Peng Shuai.

Senator Mitt Romney said Dalio’s “feigned ignorance of China’s horrific abuses and rationalization of complicit investments… is a sad moral lapse.”

Dalio later said he was misunderstood and that he took China’s human rights record into account when investing there.

China’s economy has grown almost 10% a year on average since Beijing carried out major reforms in the late 1970s, lifting more than 800 million people out of poverty, according to the World Bank.

China’s gross domestic product in dollar terms is around $14.7 trillion, whereas that of the US is $20.9 trillion, World Bank data shows.

Yet there are clouds on the horizon, with highly indebted property developer Evergrande teetering on the edge of default and a falling working-age population.

Dalio told the BBC that he believes the collapse of Evergrande is being dealt with in a “healthy” way and that it will be good for the Chinese economy for the government to curb property speculation.

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December 6, 2021

Billionaire investor Ray Dalio says his comments on China’s disappearances were misunderstood – after he said Beijing was being a ‘strict parent’

Ray Dalio on the Forum stage during day two of Web Summit 2018. — Ray Dalio has raised $1.3 billion for a private fund in China, according to Bloomberg.
Eoin Noonan/Web Summit via Getty Images

Ray Dalio said he “sloppily answered” a question on Chinese human rights, which led to a misunderstanding.
Last week, the billionaire investor likened Beijing to “strict parents” when asked about China’s record.
The Bridgewater boss is making big moves in China, and is one of many caught up in a debate about investing there.

Billionaire investor Ray Dalio said he answered a question on China’s human rights record “sloppily,” which led to a “misunderstanding” of his views, speaking as he defended his investments in the country.

After coming in for criticism for comments made to CNBC last week, Bridgewater Associates boss tried to clarify his position in Twitter thread and a post on LinkedIn over the weekend.

“I sloppily answered a question about China from Andrew Ross Sorkin that created a misunderstanding of my views,” Dalio tweeted Sunday evening.

He added: “I’m sorry my answer lacked that nuance and caused confusion.”

Last week, Dalio was asked about China’s human rights record by CNBC’s Andrew Ross Sorkin, in light of the disappearance of top tennis player Peng Shuai from the public eye.

In response, the investor said he “can’t be an expert in those things,” but went on to compare Beijing to a “strict parent.”

Those comments drew a strong backlash, with Senator Mitt Romney saying Dalio’s investments in China were “a sad moral lapse.”

Dalio, the founder and chief investment officer of Bridgewater Associates, the world’s biggest hedge fund, raised $1.3 billion for a new Chinese private fund, according to Bloomberg.

Romney tweeted last week: “Ray Dalio is brilliant and a friend, but his feigned ignorance of China’s horrific abuses and rationalization of complicit investments there is a sad moral lapse.”

At the weekend, the American investor said he was attempting to explain what a Chinese leader had once told him about Beijing’s approach to governing.

“Confucianism is based on the family, and that extends into their governance, which is a more autocratic approach,” he wrote. “I was not expressing my own opinion or endorsing that approach.”

He explained his investments in China by saying Bridgewater’s clients “rely on us to invest in the best possible ways in all the countries.”

In addition, he said he weighs the pros and cons of investing in China in light of human rights issues, although he did not directly address Beijing’s alleged activities.

The Chinese government has long been accused of stamping down hard on dissidents, including the removal of high-profile figures from public view.

Most recently, human rights groups, governments and the Women’s Tennis Association have raised concerns about the fate of Peng Shuai. The tennis player accused a senior member of the Chinese Communist Party of sexual misconduct, and was then not seen for about three weeks.

Many investors and institutions are grappling with the thorny issue of China. Hedge fund titan George Soros slammed BlackRock earlier this year, saying the asset manager’s big push into China is a “tragic mistake.”

JPMorgan boss Jamie Dimon apologized in November for making a joke that his bank would outlast the Chinese Communist Party.

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December 2, 2021

Watch billionaire investor Ray Dalio defend China’s moves to disappear citizens as being ‘a strict parent’

GettyImages 1178614090 — Ray Dalio.
Kimberly White/Getty Images

Ray Dalio likened China’s moves to remove private citizens from the public eye to those of a “strict parent.”
The founder of Bridgewater Associates was speaking with Andrew Ross Sorkin on CNBC.
Dalio has long been bullish on the Asian superpower. His firm has surpassed many private-fund managers in China.
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Billionaire investor Ray Dalio likened China’s moves to banish private citizens from the public eye to those of a “strict parent.”

The founder of investment management firm Bridgewater Associates was speaking with television anchor Andrew Ross Sorkin on CNBC Tuesday.

Sorkin asked Dalio how he reconciles China’s human rights issues and the recent disappearances of high-profile citizens with investing in the country.

“What they have is an autocratic system,” Dalio said. “As a top-down country … it’s kind of like a strict parent. They behave like a strict parent … That is their approach. We have our approach.”

Dalio has long been bullish on the Asian superpower. His firm, the world’s largest hedge fund with $150 billion in assets under management, has surpassed most other private-fund managers in China with its 8 billion yuan fund.

Watch the clip below.

—Josh Wolfe (wolfejosh.eth) (@wolfejosh) November 30, 2021

Chinese tennis player Peng Shuai vanished from public view on November 2 after accusing the country’s former vice-premier, Zhang Gaoli, of sexual assault. She reappeared a few weeks later, but the initial disappearance sparked a public outcry on a national and global scale.

On December 1, the Women’s Tennis Association announced an immediate suspension of all tournaments in China, including Hong Kong, due to Peng’s treatment.

The former US Open semifinalist’s recent disappearance comes after Alibaba founder Jack Ma also was publicly unseen for several months after sparring with Chinese regulators.

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November 12, 2021

Billionaire investor Ray Dalio says the US is ‘on the wrong path’ after inflation hits a 31-year high

2021 01 25T105118Z_1924936237_RC2YEL9EH2SH_RTRMADP_3_USA BIDEN DALIO.JPG — Ray Dalio founded the hedge fund Bridgewater,
Thomas Peter/Reuters

Billionaire investor Ray Dalio has said the US is “on the wrong path” after inflation surged to a 31-year high.
He also warned investors that strong inflation erodes their wealth, even if their portfolios are rising.
Dalio said the US has to focus on raising productivity, if it wants to continue to grow and prosper.

Billionaire hedge fund manager Ray Dalio has said the US is “on the wrong path” after inflation hit a 31-year high in October.

Dalio posted a newsletter on LinkedIn warning that strong inflation is eroding people’s wealth. He said people shouldn’t be fooled into thinking they’re getting richer just because their financial portfolios are going up.

He had a stark warning for the US, saying it must focus spending on investment to boost productivity, rather than to fuel consumption.

“The United States now is spending a lot more money than it’s earning, and paying for it by printing money that is being devalued. To improve, we have to raise productivity and cooperation. Right now we are on the wrong path,” Dalio said.

The investor’s intervention came after data showed Wednesday that US consumer price index inflation shot up to 6.2% year-on-year in October, the highest level since 1990. The jump was powered by rising prices for energy, shelter, food and vehicles, with the US economy running red hot as it recovers from the coronavirus pandemic.

Dalio founded the $150 billion hedge fund Bridgewater Associates, and is its co-chief investment officer.

He said the high level of inflation was a result of stimulus policies from the US government and Federal Reserve. “At this time 1) the government is printing a lot more money, 2) people are getting a lot more money, and 3) that is producing a lot more buying that is producing a lot more inflation,” he wrote in the newsletter.

“Some people make the mistake of thinking that they are getting richer because they are seeing their assets go up in price, without seeing how their buying power is being eroded. The ones most hurt are those who have their money in cash,” he added.

Investors are normally very worried about inflation because it eats away at the value of their portfolios. For example, if an asset returns 3% in a year but inflation is 4%, the investor has lost 1% in real terms.

Yet in recent weeks the stock market has remained relatively buoyant, despite the surge in price levels. Many analysts say this is because real returns on bonds are at record lows, meaning there’s no alternative to buying stocks.

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September 8, 2021

Hedge-fund billionaire Ray Dalio says investors shouldn’t ignore investing opportunities in China even after recent market turmoil

Hedge fund billionaire Ray Dalio told Bloomberg that investment opportunities in China and Singapore shouldn’t be ignored.
“It’s a part of the world that one can’t neglect and not only because of the opportunities it provides but you lose the excitement if you’re not there,” he said.
The investor has recommended diversifying into Chinese stocks for some time.
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Billionaire investor Ray Dalio told Bloomberg that opportunities in China and Singapore can’t be neglected.

The founder of Bridgewater Associates – the world’s largest hedge fund – spoke about how his personal investments and family office’s philanthropic efforts have been focused on the region.

“It’s a part of the world that one can’t neglect and not only because of the opportunities it provides but you lose the excitement if you’re not there,” Dalio said when asked about his family office’s plans in the region. “And so our objective is to be there both economically and investment-wise.”

Dalio’s comments come as some on Wall Street question the long-term prospects of investing in China amid the country’s ongoing regulatory crackdown across sectors including fintech and education.

In a Wall Street Journal opinion article published Monday, George Soros said that BlackRock’s heavy investment in China is a “tragic mistake” that will hurt the US’s national interests.

“It is likely to lose money for BlackRock’s clients and, more important, will damage the national security interests of the US and other democracies,” Soros said.

But Dalio has been bullish on the region for some time. In July, he said Beijing’s regulatory crackdown on its tech economy shouldn’t spook investors, and added that both US and Chinese stocks should be included in one’s portfolio.

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May 7, 2021

The CFO of the world’s largest hedge fund is joining crypto firm NYDIG

2021 04 18T142112Z_354823741_RC2EYM94RGAK_RTRMADP_3_CRYPTO CURRENCY BITCOIN.JPG — The exchange rates and logos of bitcoin, ether, litecoin, and monero are seen on the display of a cryptocurrency ATM of blockchain payment service provider Bity at the House of Satochi bitcoin and blockchain shop in Zurich, Switzerland, March 4, 2021.
REUTERS/Arnd Wiegmann/File Photo

John Dalby, CFO of Bridgewater Associates, is joining crypto firm NYDIG as CFO.
The executive is the latest high-profile executive move within the cryptocurrency space.
Dalby joins as NYDIG expands its operations, in step with the crypto market’s rapid rise.
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John Dalby, CFO of Bridgewater Associates, is joining NYDIG, according to a statement Friday.

At NYDIG, a provider of investment and technology solutions for bitcoin, Dalby will serve as CFO.

Bridgewater told Bloomberg that Dalby will stay until the second quarter.

Dalby is the latest high-profile executive move in the cryptocurrency space.

Christopher Giancarlo, former chairman of the US Commodity Futures Trading Commission, also known in the industry as “crypto dad,” joined BlockFi, a cryptocurrency financial services company, in April.

Brian Brooks, a former Coinbase executive who previously was the Acting Comptroller of the Currency under the Trump administration, took the helm as Binance US CEO in May. Brooks was dubbed as the “first fintech Comptroller” and “CryptoComptroller.”

Prior to joining Bridgewater, Dalby was CFO and COO at D.E. Shaw Renewables Investments. Before that, he enjoyed a 20-year career at UBS where he held the role of CFO at UBS Americas.

The appointment of Dalby comes during a period of rapid growth for NYDIG.

“The growth of NYDIG has been incredible,” he said in a statement. “I share NYDIG’s vision for Bitcoin’s ability to propel economic empowerment for all.”

The firm recently raised more than $300 million from a group of strategic partners including Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual, Liberty Mutual, Starr Companies, and FIS.

Earlier in May, NYDIG teamed up with fintech company Fidelity National Information Services to enable banks across the US to offer the cryptocurrency in coming months, CNBC first reported.

Banks are requesting bitcoin because they are seeing customers sending money to cryptocurrency exchanges such as Coinbase, according to Yan Zhao, president of NYDIG.

The rally in cryptocurrencies soared in 2021 – with bitcoin rising 95% year to date, ether up 380%, and dogecoin surging 13,000%.

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January 25, 2021

Bridgewater founder Ray Dalio says the US is on the ‘brink of a terrible civil war’ because of wealth gaps and political partisanship

Bridgewater Associates founder Ray Dalio tweeted Sunday that the US could fall into a “terrible” civil war if its political and economic challenges aren’t addressed.
“Our country is still in a terrible financial state and terribly divided,” he wrote.
He called on Democrats and Republicans to work together to address the wealth gap, government debt, and political partisanship.
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Bridgewater Associates founder Ray Dalio said on Sunday he believes the United States could devolve into a “terrible civil war” if political, economic, and social divisions aren’t addressed.

“I believe we are on the brink of a terrible civil war,” the hedge fund billionaire wrote in a series of Twitter posts.

“We are at an inflection point between entering a type of hell of fighting or pulling back to work together for peace and prosperity,” he said. “Our country is still in a terrible financial state and terribly divided.”

Dalio’s stark assessment comes as the US faces enormous challenges, including the pandemic-induced economic crisis, income inequality, deep political divides, and massive government debt. It also comes weeks after a mob of supporters of former President Donald Trump stormed the US Capitol, fueled by baseless allegations of voter fraud in the presidential election. Five people died in the violence, and dozens of rioters have been arrested.

Dalio had praise for newly sworn-in President Joe Biden, saying he was “thrilled to hear what President Biden said at his inauguration. It is consistent with the direction history has shown the country needs to move in.”

During his inaugural address, Biden called for unity among Americans and said “democracy had prevailed” after the unprecedented attempt to reverse the results of the presidential election and the storming of the Capitol.

This was not the first time Dalio has warned that the US could fall into a kind of civil war if political and wealth gaps aren’t addressed.

He has often warned that a lack of opportunity, income divides, and under-investment in education could cause irreversible damage.

“I’ve studied the last 500 years of history and cycles: large wealth gaps with large values gaps at the same time that there’s a lot of debt and there’s an economic downturn produces conflict and vulnerability,” he told CNN’s Poppy Harlow in an interview aired last month.

Dalio also likened the recent exodus of CEOs and companies from business hubs like New York and San Francisco to Florida and Texas as a sort of “civil war.”

“We’re seeing a form of civil war: people are leaving to go from one place to another, partially for taxes, but also partially for other reasons,” he said in December. “The worst alternative is that one side or another says, ‘This isn’t my country anymore. This isn’t my population.'”

On Sunday, Dalio said both Democrats and Republicans need to bring about change.

“Good words and spirit aren’t enough,” he wrote. “People will have to agree on both how to grow the pie and how to divide it well. That will require revolutionary change.”

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December 9, 2020

Billionaire Ray Dalio reviewed Bitcoin, praised China, and explained his thoughts on the outlook for financial markets in a Reddit session. Here are his 10 best quotes.

Investor Ray Dalio hosted a plain-spoken Reddit session on Tuesday at which users had the chance to ask him anything from his outlook for financial markets, to the potential of Bitcoin.
The billionaire also discussed China’s leadership, emphasized the importance of diversification in a portfolio, and how a “flood of money” is lifting asset prices.
Here are the 10 best quotes from Dalio’s “Ask Me Anything” session.
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Hedge-fund manager Ray Dalio hosted a Reddit “Ask Me Anything” session on December 8. In response to Redditors’ questions on what he expects for financial markets, he explained why a “flood of money and credit” that’s unlikely to recede will lift asset prices.

The self-made billionaire also touched upon his thoughts on Bitcoin, why he admires China’s leadership, his concerns over the US economy, and the future of jobs.

Dalio, founder of the world’s largest hedge fund Bridgewater Associates, has a net worth of $15.5 billion, according to the Bloomberg Billionaires Index.

Here are Dalio’s 10 best quotes from the Reddit session:

1. “I think that Bitcoin (and some other digital currencies) have, over the last ten years, established themselves as interesting gold-like asset alternatives, with similarities and differences to gold and other limited-supply, mobile (unlike real estate) store holds of wealth.”

2. “As far Bitcoin relative to gold, I have a strong preference for holding those things which central banks are going to want to hold and exchange value in when they are trying to transact.”

3. “The Chinese leadership is extremely knowledgeable in the lessons of its history and how things work. What I would convey to you and my fellow Americans is that they have a lot of internal disagreement and processes for dealing with it well within the government, so it does exist. Whether or not it is more productive to have the entire population in those discussions is a matter of opinion.”

4. “It is a very civilized society that is doing extraordinarily well and is not consistent with the stereotypes that one might believe are true. It is by no means perfect (nor is any other country) and should be open-mindedly assessed based on evidence, rather than emotionally reacted against based on derogatory characterizations.” – on what people that ignore China are missing.

5. “We are in a flood of money and credit that is lifting most asset prices and distributing wealth in a way that the system that we’ve come to believe is normal is unable to, and that is threatening to the value of our money and credit.”

6. “It is important to diversify well in terms of currencies and countries, as well as asset classes. Internally, this is taking place in a politically and socially threatening environment, which will affect taxes, spending, and how we are with each other. Externally, there will be greater competition, particularly by China.”

7. “I think that between now and the mid-term elections in 2022, and between then and the next presidential election in 2024, we will face critical choices both domestically and internationally that will define the likelihood of having an internal and/or external existential conflict.” – on the evolution of US leadership.

8. “I worry that we are our own worst enemies and/or that we collectively aren’t willing to make the revolutionary changes that are needed to be on the best path for dealing with our circumstances. However, it is certainly possible that we can get on that path.” – on the superpower status of the United States.

9. “My fear, which is turning into a reality, is those countries that are working the hardest are also increasingly finding ways to work the smartest, which is hurting the competitiveness of those who are working less hours and less efficiently.” – on the future of jobs and workplace culture.

10. “What is most important is inventiveness – the capacity to get much more out of an hour’s work.”

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