Why would Bridgewater hedge fund hold 87% of equity assets in simple ETF's? Theories?

Discussion in 'Wall St. News' started by wilburbear, Oct 14, 2017.

  1. 777

    777

    They have roughly 160 billion plus leverage to work with.
     
    #11     Oct 15, 2017
  2. ET180

    ET180

    My guess would be for liquidity reasons. The large ETFs tend to have much better liquidity than individual stocks.
     
    #12     Oct 15, 2017
    murray t turtle likes this.
  3. Basically he's trading baskets. Other than whatever edge that provides, what magic do you thing there is?
     
    #13     Oct 16, 2017
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  4. zdreg

    zdreg

    Dalio has discovered the concept KISS applies in investing.
     
    #14     Oct 16, 2017
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  5. truetype

    truetype

    > Why would Bridgewater hold 87% of equity assets in simple ETFs?

    The ETF providers are very good at efficiently assembling and managing tracking portfolios. Some ETFs charge low single-digit bips now.
     
    #15     Oct 17, 2017
    murray t turtle likes this.
  6. sss12

    sss12

    ...and BWA also runs a big risk parity strategy that needs leverage and liquidity.
     
    #16     Oct 17, 2017
  7. %%
    Another reason, Comagnum. 2017 is the year that the Random Walker Down Wall St[ Mr Malkiel] wrote on WSJ putting that much money in ETFs will not keep working, because to many people are doing it. [ paraphrase] So my reasoning of Bridgewater doing that, is they are better @ markets than a random walker .LOL:D.

    NO disrespect to mr malkiel,random walker; actually share some of his concerns + think the stock pickers may do better in 4th quarter than ETFs. Not a prediction ; wisdom is profitable to direct.
     
    #17     Oct 18, 2017
  8. truetype

    truetype

  9. %%
    And a pattern of NOT wanting to turn the managment of his company to anyone;a common pattern of founders:caution::cool:
     
    #19     Oct 18, 2017
  10. dealmaker

    dealmaker

    ""
     
    #20     Mar 31, 2018
    murray t turtle likes this.