Manish71 28 Report post Posted January 7, 2019 I am wondering do these hedge funds use option strategies to get these kind of returns last year: https://finance.yahoo.com/news/bridgewater-apos-pure-alpha-fund-230000726.html Share this post Link to post Share on other sites
CJ912 136 Report post Posted January 7, 2019 Bridgewater is not your average hedge fund. In my day job, I have had quite a few meetings with them and there approach is extremely thorough and very interesting. I would definitely recommend Ray Dalio's books ("Principles" and 'a template for understanding big debt crises") for a better understanding of both markets and Bridgewater. Pure Alpha uses a combination of over 125 different trading strategies. As they say, they implement their decisions based on their understanding of the economic machine (see youtube link below). They identify timeless and universal drivers of markets, combining their views on macroeconomic drivers, intermarket action and capital flows. I would be surprised if there weren't a number of options strategies between the 125 strategies employed, but they will likely differ substantially from the SO approach. Share this post Link to post Share on other sites
Manish71 28 Report post Posted January 7, 2019 1 hour ago, CJ912 said: Bridgewater is not your average hedge fund. In my day job, I have had quite a few meetings with them and there approach is extremely thorough and very interesting. I would definitely recommend Ray Dalio's books ("Principles" and 'a template for understanding big debt crises") for a better understanding of both markets and Bridgewater. Pure Alpha uses a combination of over 125 different trading strategies. As they say, they implement their decisions based on their understanding of the economic machine (see youtube link below). They identify timeless and universal drivers of markets, combining their views on macroeconomic drivers, intermarket action and capital flows. I would be surprised if there weren't a number of options strategies between the 125 strategies employed, but they will likely differ substantially from the SO approach. They have $160 billion under management, so those strategies have to be on very liquid tickers. Share this post Link to post Share on other sites
CJ912 136 Report post Posted January 7, 2019 That 160Bn doesn't sit in Pure Alpha alone, I believe most of it is in All Weather 1 Share this post Link to post Share on other sites
