Home Finance How Does the World’s Largest Hedge Fund Actually Make Its Cash?

How Does the World’s Largest Hedge Fund Actually Make Its Cash?

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How Does the World’s Largest Hedge Fund Actually Make Its Cash?

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“What was he even speaking about?” he vented afterward.

The monetary analyst Jim Grant, the self-styled “prophet of motive,” watched the interview with amazement. He had an arcane e-newsletter, Grant’s Curiosity Fee Observer, which was in style within the sense that many severe traders claimed to learn it.

Mr. Grant for years had privately mulled darkish questions on Bridgewater. He assigned his prime deputy to dig in. They fanned out broadly, scrutinizing the agency’s public filings, and furtively speaking to anybody who might need a clue as to what was happening. They have been inundated with “all kinds of individuals winking and nodding,” Mr. Grant recalled, “that there’s one thing actually, actually mistaken.” In October 2017, Mr. Grant devoted a full problem of his publication solely to Bridgewater, and the themes of “distraction, sycophancy” and “thriller.”

The e-newsletter claimed a litany of points. Shareholders in Bridgewater’s father or mother firm — a gaggle that features workers and purchasers — didn’t mechanically obtain copies of the agency’s monetary statements. 5 separate Dalio household trusts appeared to every maintain “at the least 25 p.c however lower than 50 p.c of Bridgewater, one thing that appears mathematically tough,” the e-newsletter stated. Per public disclosures, the hedge fund lent cash to its personal auditor, which struck the longtime analyst as precarious and strange. “We are going to exit on a limb, Bridgewater shouldn’t be for the ages,” the e-newsletter concluded.

At 8:30 p.m. the day the report was printed, Mr. Grant settled in on the sofa at residence along with his spouse to observe a New York Yankees recreation. When his residence telephone rang from an unknown Connecticut quantity, Mr. Grant let the decision go to voice mail. Not till a couple of half-hour later did his spouse hear a distant beep. She walked over and hit play on the machine, placing the message on speakerphone. Mr. Dalio’s voice, measured and calm, rang out:

“I’m undecided in the event you’ve seen the present problem of Grant’s,” Mr. Dalio stated, based on Mr. Grant. Mr. Dalio’s message went on for practically a half-hour detailing his complaints in regards to the piece.

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