Ray Dalio’s Bridgewater Associates might become the first hedge fund to hand over the reins to an algorithm. At least that’s the takeaway from Bloomberg’s latest profile of the hedge fund billionaire, who founded Bridgewater Associates, presently the world’s largest hedge fund with more than $160 billion AUM. The profile offers an update on the firm’s difficulties in formulating a succession plan, as well as its founder’s quest to automate many of its management functions.
Of course, in addition to personnel issues, Dalio’s vision for Bridgewater’s future relies heavily on artificial intelligence. His efforts to creating a proprietary artificial-intelligence software called ‘the Book of the Future’ that will eventually help manage the firm were first detailed in a WSJ profile published late last year. As the firm’s returns have sagged in recent years, investors and the media have started to question Dalio’s commitment to ‘radical transparency.’
This post was published at Zero Hedge on Aug 10, 2017.