The editor of the Grant’s Interest Rate Observer, Jim Grant, regrets parts of his blistering report on October 6 that raised questions regarding the Bridgewater Associates of Ray Dalio and its relationship with KPMG.
“We were wrong to question the relationship between the auditor and Bridgewater,” said Grant on CNBC’s ” Closing Bell ” on Friday. “Bridgewater is a secretive and eccentric firm and I let my suspicions of that get in the way of our ordinarily comprehensive due diligence.”
The investment newsletter issue that was published last week by the well-respected Jim Grant became the talk of Wall Street. Grant said that he was not retracting his full report, just the part that assumed suspicious activity with its auditor and its relationship with the Bank of New York Mellon.
“Grant’s is bearish on the world’s biggest and most client-enriching hedge-fund organisation. As Bridgewater is closely held, this must be a conceptual short-sale. It’s no less important for that reason, we think,” said the publication that is run by Grant.
“Nobody knows when today’s credit-enhanced, central-bank-infused, interest-rate-inflated updraft in asset prices will run its course, still less the name of the firm with which history will associate that inflexion point. For the latter distinction, Grant’s is pencilling in the name of the firm that Dalio built.”
The report regarded on how Dalio is lately preoccupied with doing a TED talk, feuding with journalists, and conducting multiple media interviews promoting his new book.
“Such activities have one thing in common: They are not investing,” said the note.
In the end, the Grant publication said that it does not believe that there is a long-term future for the firm.
“Many are the mysteries and contradictions of the world’s largest hedge fund. We will go out on a limb: Bridgewater is not for the ages,” concluded the report.
Bridgewater is the biggest hedge fund in the world, managing around $160 billion, as per its website.
The business is known for its Pure Alpha investing product, which became the most successful fund in the industry ever. The fund combined various uncorrelated return strategies that are aimed to maximise returns while lowering risk.