Bridgewater Making Significant Relative Value Decisions In Recent Portfolio Adjustments

Bridgewater, known as a master of the relative value investment, appears to be operating right out of a quantitative play book as the portfolio is positioned for 2015

There are a few common principles used in algorithmic trading that drive some rather sophisticated strategies. One of these concepts is mean reversion, when the price of an asset has risen dramatically relative to peer benchmarks, for instance, at some point the meteoric price rise of that asset might slow and even fall back to earth to a degree.

Such might be the thinking behind one of the world’s top hedge fund managers, Ray Dalio, as Bridgewater Associates as he looks at his portfolio heading into 2015.

Dalio and his team...