Ray Dalio Has an Unbelievable Algorithm

Humans create algorithms, so algorithms can perpetuate human biases. As obvious as this statement might seem, some pretty smart people still don't get it.

The latest example arrived last week, in a Wall Street Journal article on a relationship at Bridgewater, the world's biggest hedge fund, involving senior executive Greg Jensen and an unnamed female subordinate. The Journal, citing "people familiar with the matter," reported that Bridgewater founder Ray Dalio, in parsing statements from the two, placed more weight on Jensen's version of events because "Jensen’s overall believability had long been ranked particularly highly in Bridgewater’s rating metrics." The woman eventually received a settlement of more than $1 million and was compelled to leave the firm. Jensen remains at Bridgewater.