, Columnist
If Ray Dalio Isn't Making Money Now, Neither Will You
The coronavirus is upending traditional relationships between asset classes. Even the smartest money is failing the test.
Bridgewater’s All Weather strategy could use an umbrella.
Photographer: Patrick T. Fallon/Bloomberg
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The coronavirus outbreak is costing hedge funds billions, as a massive dislocation across asset classes causes a breakdown in traditional relationships.
In the past 10 days, bonds, stocks and even gold — a hedge against the prospect of central banks’ helicopter money — are falling in tandem. Funds that rely on computer algorithms and historical global macro trends are hurting.