Dalio’s Hedge Fund at Risk of Being Dumbed by Pension

The video discusses the underperformance of Ray Dalio's Bridgewater Pure Alpha Fund over the past 16 years and the considerations of a pension fund managing $175 million with Bridgewater. It explores the potential impact on other macro managers and the competitive nature of the hedge fund industry. The discussion includes the challenges of client retention, especially for large funds like Bridgewater, and the current market conditions where hedge funds are raising money despite concerns about yields and fees.

What is the main reason the pension fund is considering dropping Bridgewater Pure Alpha Fund?

• The fund has consistently outperformed over the years.

• The fund has underperformed for most of the past 16 years.

• The fund has recently increased its fees.

• The fund has a new management team.

What is a significant challenge when withdrawing investments from hedge funds?

• Hedge funds are highly liquid products.

• Hedge funds have no withdrawal fees.

• Hedge funds are illiquid products.

• Hedge funds offer immediate returns.

How do hedge funds try to retain large clients?

• By reducing the number of investment options.

• By improving performance and making fee concessions.

• By offering immediate liquidity.

• By increasing management fees.

What is the performance of macro hedge funds compared to equity hedge funds this year?

• Macro hedge funds are up 12%, while equity hedge funds are up 6.8%.

• Macro hedge funds are up 6.8%, while equity hedge funds are up 12%.

• Both macro and equity hedge funds are up 6.8%.

• Both macro and equity hedge funds are up 12%.

What factor is influencing investors' decisions on where to allocate their money?

• Long-term performance and yearly returns.

• Short-term market trends.

• The number of hedge funds available.

• The reputation of the fund manager.