Ray Dalio

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Ray Dalio
Web Summit 2018 - Forum - Day 2, November 7 HM1 7481 (44858045925).jpg
Born
Raymond Dalio

(1949-08-08) August 8, 1949 (age 69)[1]
New York City, New York, U.S.
ResidenceGreenwich, Connecticut, U.S.
NationalityAmerican
Alma materLong Island University
Harvard Business School
OccupationInvestor, hedge fund manager, and philanthropist
Known forFounder of Bridgewater Associates
Net worthUS$18.4 billion (June 2019)[2]
Spouse(s)Barbara Dalio
Children4 sons, including Paul Dalio
Parent(s)Marino Dallolio
Ann Dallolio

Raymond Dalio (born August 8, 1949) is an American billionaire investor, hedge fund manager, and philanthropist.[3] Dalio is the founder of investment firm Bridgewater Associates, one of the world's largest hedge funds.[4] Bloomberg ranked him as the world's 58th wealthiest person in June 2019.[5]

Early life and education[edit]

Ray Dalio was born in the Jackson Heights neighborhood of New York City's Queens borough.[6] He is the son of a jazz musician, Marino Dallolio (1911–2002), who "played the clarinet and saxophone at Manhattan jazz clubs such as the Copacabana," and Ann, a homemaker.[6][7][8] He is of Italian descent.[8]

Dalio began investing at age 12 when he bought shares of Northeast Airlines for $300 and tripled his investment after the airline merged with another company.[9] Dalio received a bachelor's degree in finance from Long Island University (CW Post) and an MBA from Harvard Business School in 1973.[9][10]

Investment career[edit]

After completing his education, Dalio worked on the floor of the New York Stock Exchange and traded commodity futures.[9] He later worked as the Director of Commodities at Dominick & Dominick LLC.[11] In 1974 he became a futures trader and broker at Shearson Hayden Stone.[9] In 1975 he founded investment management firm Bridgewater Associates out of his apartment.[12] The firm opened an office in Westport, Connecticut in 1981, and became the world's largest hedge fund in 2005.[12] As of October 2017 it had $160 billion in assets under management.[13] In 2007 Bridgewater suggested there might be a global financial crisis,[14] and in 2008 Dalio published "How the Economic Machine Works: A Template for Understanding What is Happening Now", an essay assessing the potential of various economies by various criteria.[15]

In 2011 he self-published a 123-page volume, "Principles", that outlines his philosophy of investment and corporate management based on a lifetime of observation, analysis and practical application through his hedge fund.[16][17]

In 2012 Dalio appeared on the annual Time 100 list of the 100 most influential people in the world.[18] In 2011 and 2012 Bloomberg Markets listed him as one of the 50 Most Influential people. Institutional Investor's Alpha ranked him No. 2 on their 2012 Rich List.[19][20]

In 2017 Simon & Schuster published Principles: Life & Work. The book was a New York Times #1 best-seller and Amazon’s #1 business book of 2017.[21] Dalio discusses his background as a backdrop for his takeaways about life and work. He has announced that he will write a second volume, Principles: Economics & Investing.[22]

Dalio has said that he could continue improving his returns by solidifying recurring lessons into "principles."[12]

Dalio was co-CEO of Bridgewater for 10 months before announcing in March 2017 that he would step down as part of a company-wide shake-up by April 15.[23] The company had been in a seven-year management and equity transition to find a replacement.[24] Jon Rubinstein, co-CEO of the fund, was announced to step down with Dalio, but would retain an advisory role.[23] On April 7, 2019, Dalio said on 60 Minutes that income inequality in the United States was a national emergency requiring reform.[25][26]

Personal life[edit]

Dalio resides with his wife Barbara, a descendant of Gertrude Vanderbilt Whitney, (married in 1976/77)[6] in Greenwich, Connecticut, and is known to practice the Transcendental Meditation technique.[9][27][28] They have four sons, Devon, Paul, Matthew, and Mark.[7] Devon, their eldest son (born March 26, 1978), was named after North Devon cattle because Ray was deeply involved in cattle futures at the time.[29] Second son Paul Dalio is a film director.[30] Matthew Ace "Matt" Dalio, their third son, is founder and chairman of the China Care Foundation, a non-profit that seeks to help Chinese orphans, and co-founder and CEO of Endless Mobile, Inc., a computer operating system company.[31][32] Their youngest son Mark Dalio is a wildlife filmmaker.

Wealth and philanthropy[edit]

Dalio giving a speech on philanthropy.

According to Forbes Magazine, Dalio's net worth was $18.6 billion as of January 2019.[33] In 2018 Dalio was ranked 25th in the Forbes 400 list.[34]

In 2014 Dalio reportedly earned $1.1 billion, including a share of his firm's management and performance fees, cash compensation and stock and option awards.[35]

In April 2011 Dalio and his wife joined Bill Gates and Warren Buffett's Giving Pledge, vowing to donate more than half his fortune to charitable causes within his lifetime.[36] Through the Dalio Foundation, he has directed millions in donations to the David Lynch Foundation, which promotes and sponsors research on Transcendental Meditation.[37] The Dalio Foundation has also contributed to the National Philanthropic Trust, to polio eradication projects, and to NewYork–Presbyterian Hospital.[38] The foundation has also supported the Fund for Teachers, an initiative that supports professional learning fellowships for teachers.[39]

The Dalio Foundation was part of a group of foundations supporting the 2018 launch of TED's Audacious Project, an initiative to fund social entrepreneurs working to solve global issues.[40] In March 2019 Dalio was named one of the highest-earning hedge fund managers and traders by Forbes.[41]

In 2018, OceanX, an initiative of the Dalio family, and Bloomberg Philanthropies[42] committed $185 million over a period of four years to protect the oceans.[43]

Published works[edit]

  • How the Economic Machine Works; A Template for Understanding What is Happening Now (2007)[44]
  • Principles (2017)[45]
  • A Template For Understanding Big Debt Crises (2018)[46]

Awards and honors[edit]

Principles was listed among the 13 Best Business Books of 2017 by CNBC.[47]

See also[edit]

References[edit]

  1. ^ "Bloomberg Billionaire Index". Retrieved 18 April 2018.
  2. ^ "Forbes profile: Ray Dalio". Forbes.com. Retrieved 4 June 2019.
  3. ^ "The Rise of Dalio Philanthropy: A Case Study of the New Mega-Giving". Inside Philanthropy. Retrieved April 22, 2017.
  4. ^ "Ray Dalio, Founder of World's Largest Hedge Fund: Weak Economy Makes Second Adolf Hitler More Likely". Algemeiner. Retrieved March 19, 2013.
  5. ^ "Bloomberg Billionaires Index - Ray Dalio". Bloomberg.com. Retrieved 2019-06-04.
  6. ^ a b c Wright, Robin (September 15, 2008). "Mastering the Machine". The New Yorker. Retrieved June 8, 2017.
  7. ^ a b "The Palm Beach Post from West Palm Beach, Florida on September 4, 2002 · Page 38". Newspapers.com. September 4, 2002. Retrieved June 8, 2017.
  8. ^ a b Cometto, Maria Teresa. "Ray Dalio, il libretto rosso dello speculatore che attacca l'Italia". Corriere della Sera (in Italian). Retrieved 2018-04-12.
  9. ^ a b c d e "Pursuing Self-Interest in Harmony With the Laws of the Universe and Contributing to Evolution is Universally Rewarded" Kevin Roose, April 10, 2011, New York Magazine
  10. ^ "Bridgewater's Ray Dalio on the 'Principles' of Tough Love - Alumni - Harvard Business School". www.alumni.hbs.edu. Retrieved 2019-01-30.
  11. ^ "Radical Transparency" 2010, Leaders Magazine. Volume 33, Number 3
  12. ^ a b c "The head of the world's largest hedge fund explains how he learned to invest". Business Insider. Retrieved April 12, 2017.
  13. ^ Goldstein, Matthew (16 October 2016). "Small Endowments May Get to Invest in Bridgewater Associates" (DealBook). United States: New York Times. The New York Times Company. p. B5. Retrieved 12 April 2018.
  14. ^ Cassidy, John (July 25, 2011). "Mastering the Machine How Ray Dalio built the world's richest and strangest hedge fund". The New Yorker. Retrieved December 18, 2013.
  15. ^ How the Economic Machine Works; A Template for Understanding What is Happening Now. Ray Dalio, October 31, 2008
  16. ^ Ovide, Shira (October 22, 2010). "More on Bridgewater's Ray Dalio, Wall Street's Oddest Duck". The Wall Street Journal. Retrieved December 4, 2013.
  17. ^ Rosenthal, Norman E. (2013). "The Gift of Adversity". The Gift of Adversity. Penguin Group. pp. Chapter 41. Retrieved December 4, 2013.
  18. ^ Volcker, Paul (April 18, 2012). "The 100 Most Influential People in the World". Time. Retrieved August 15, 2012.
  19. ^ Taub, Steven (April 15, 2013). "The Rich List". Institutional Investor's Alpha. Retrieved April 16, 2013.
  20. ^ Creswell, Julie (15 April 2013). "Hedge Fund Titans' Pay Stretching to 10 Figures" (DealBook). United States: New York Times. The New York Times Company. p. B1. Retrieved 2 May 2019.
  21. ^ https://www.institutionalinvestor.com/article/b184ggn6dd6090/ray-dalio%E2%80%99s-book-has-sold-a-million-copies-but-who%E2%80%99s-actually-implementing-his-ideas
  22. ^ https://www.bloomberg.com/news/videos/2018-11-19/ray-dalio-on-career-market-cycles-china-debt-video
  23. ^ a b Cox, Jeff (2017-03-01). "Bridgewater's Ray Dalio to step down at Co-CEO on April 15". Retrieved 2017-06-23.
  24. ^ Cox, Jeff (2017-03-01). "Bridgewater's Ray Dalio stepping down from co-CEO role in company shakeup". CNBC. Retrieved 2017-12-28.
  25. ^ Mark Niquette (April 7, 2019). "Dalio Says Capitalism's Income Inequality Is National Emergency". Bloomberg.com. Retrieved April 9, 2019.
  26. ^ Bill Whitaker (April 7, 2019). "Ray Dalio says wealth inequality is a national emergency; The founder of the most successful hedge fund in the world says capitalism needs to be reformed and that the American dream is lost". cbsnews.com. Retrieved April 9, 2019.
  27. ^ Opalesque (January 8, 2008). "Ray Dalio's winning strategy".
  28. ^ Comstock, Courtney (October 25, 2010). "Ray Dalio Is Too Modest To Admit He Returned 38% YTD Using Transcendental Meditation". Business Insider.
  29. ^ Ray Dalio, Principles, Simon & Schuster, 2017, pp.24-25.
  30. ^ Finance (March 19, 2012). "Ray Dalio's Son Is An Entertainment Producer, And He's Directing A Movie About Maniac Depressives With Spike Lee's Support". Business Insider. Retrieved June 2, 2017.
  31. ^ "Top 10 Hedge Fund Guru's children: The Privileged Lives of Hedge Fund Heirs". Alpha Banker. June 25, 2014. Retrieved June 8, 2017.
  32. ^ "About Us | Endless Computers". Endlessos.com. Retrieved 2017-10-19.
  33. ^ "Ray Dalio". Forbes. Retrieved 2019-01-30.
  34. ^ "Forbes 400 2018". Forbes. Retrieved 2019-04-03.
  35. ^ H. Kent Baker; Greg Filbeck (26 July 2017). Hedge Funds: Structure, Strategies, and Performance. Oxford University Press. pp. 52–. ISBN 978-0-19-060739-5.
  36. ^ "Bridgewater's Dalio Joins Giving Pledge - NY Times". NY Times. April 28, 2011. Retrieved April 29, 2015.
  37. ^ "Hedge Fund Billionaire Ray Dalio Gives Big for David Lynch". www.institutionalinvestor.com. Retrieved 2017-08-23.
  38. ^ Vardi, Nathan. "Hedge Fund Billionaire Ray Dalio Steps Up Foundation Giving". Forbes. Retrieved 2018-04-09.
  39. ^ "9 Stamford Educators Receive Grants For U.S. & Foreign Studies". Stamford, CT Patch. 2018-04-09. Retrieved 2018-04-10.
  40. ^ Nicosia, Mareesa. "TED Launches The Audacious Project, Awarding $250M to New Crop of Social Entrepreneurs". Retrieved 2018-04-10.
  41. ^ https://www.forbes.com/sites/nathanvardi/2019/03/20/the-highest-earning-hedge-fund-managers-and-traders/#4e2c993a40eb
  42. ^ "Michael R. Bloomberg and Ray Dalio's OceanX Announce Over $185 Million for New Partnership to Increase Ocean Exploration and Protection". Bloomberg Philanthropies. Retrieved 2019-05-22.
  43. ^ Chaykowski, Kathleen. "Ray Dalio and Michael Bloomberg Commit $185 Million To Protect The Oceans". Forbes. Retrieved 2019-04-02.
  44. ^ Dalio, Ray (January 13, 2018). "A Template for Understanding What's Going On" (PDF).
  45. ^ Goldstein, Matthew; Stevenson, Alexandra (8 September 2018). "Bridgewater's Ray Dalio Spreads His Gospel of 'Radical Transparency'" (DealBook). United States: New York Times. The New York Times Company. p. BU1. Retrieved 8 September 2017.
  46. ^ Montag, Ali (2018-09-14). "Billionaire Ray Dalio remembers the moment he saw the financial crisis coming: 'This is the big one'". CNBC. Retrieved 2018-09-17.
  47. ^ Clifford, Catherine (2017-12-27). "13 of the best business books of 2017". CNBC. Retrieved 2017-12-28.

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