Capital Allocators – Inside the Institutional Investment Industry Greg Jensen – Bridgewater Associates (Manager Meetings, EP.06)
Aug 12, 2021
Greg Jensen, Co-CIO of Bridgewater Associates, discusses the intricate strategies behind the $150 billion investment giant. He shares insights on the firm's culture of radical truth and transparency, which aligns with Stephen Gilmore's New Zealand Super Fund portfolio. They dive into market evolution, emphasizing the need for adaptation amidst inflation and economic shifts. Personal reflections include the importance of mentorship in leadership, the impact of daily habits like intermittent fasting, and how formative experiences shape decision-making.
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Path to Bridgewater
- Greg Jensen's early fascination with probability led him to study patterns in games like Stratomatic Baseball and even 7-Up bottle caps.
- This interest, combined with a move to Canada and subsequent interest in currency markets, eventually drew him to Bridgewater.
Systematizing Investment Logic
- Bridgewater's "secret sauce" is systematizing investment logic, starting in 1980 with Ray Dalio writing down his reasoning.
- They codify this logic into algorithms readable by both computers and humans, allowing continuous refinement and learning.
Importance of Diversification
- Bridgewater aims for a 55-45% success rate on individual trades, acknowledging the difficulty of market prediction.
- Diversification across many different, uncorrelated ideas is key to achieving overall profitability and surviving in the long run.