I am a big believer is what he is doing. I worked both in financial firm and now have my own small factory. There is so much wast in financial firms. in the early 1990s, people with MBA where getting 100k a year for just doing spreadsheets. On top of that, it is not a full days worth of work. the work was not rewarding and it was high stress. The paycheck was great, for sure. I am trying to do that same thing now with my small manufacturing shop. Ordering of raw materials, Manufacturing allocation, labor etc are all controlled by a software. These are all boring jobs that an AI will do a much better job at.
Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
71–80 of 106 posts
Re: Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
#72Earlier quoted context omitted.
Yeah, really. "The pressure is such that those who stay sometimes are seen crying in the bathrooms, said five current and former staff members." What's the upshot? Seven figure salaries or something?
there are people crying in the bathrooms at every big firm on the planet.
yes very true. And everyone is taking pills just to keep up with the pressure . I much rather have an AI take over these tasks then taking more pills
Re: Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
#73I think this.... > Mr. Dalio returned to run Bridgewater earlier this year after stepping back to a mentor role six years ago. Is what's driving almost all of his new found desire for a unified AI to run everything. Here you have a man who by any measure has been wildly successful, he tried stepping back and letting other take over but ended up finding that the team he left in charge didn't make the exact decisions h…
I'm not sure All Seasons is such a great portfolio...
It's way overweight U.S. Treasury bonds (55%) and underweight stocks (30%). And what's with 15% in gold and commodities (which produces no interest or dividend income)?
Re: Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
#74Earlier quoted context omitted.
> see: https://www.principles.com/ This is a very, very good read. Thanks for sharing.
You might disagree with the read if you actually saw what the implementation of said principles looks like. There's plenty of articles out there about what those principles do to a psyche, but let's forget about those: The culture is still broken because there is no sensible way to have real transparency in an environment with power differentials. In any situation with a broken status quo, openness by those that disa…
This excellent post echoes what I have heard from friends employed or formerly employed at Bridgewater, although these patterns are common to all large organisations.
Re: Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
#75I think this.... > Mr. Dalio returned to run Bridgewater earlier this year after stepping back to a mentor role six years ago. Is what's driving almost all of his new found desire for a unified AI to run everything. Here you have a man who by any measure has been wildly successful, he tried stepping back and letting other take over but ended up finding that the team he left in charge didn't make the exact decisions h…
I'm not sure All Seasons is such a great portfolio... It's way overweight U.S. Treasury bonds (55%) and underweight stocks (30%). And what's with 15% in gold and commodities (which produces no interest or dividend income)?
In fact, Dalio himself just a couple years ago contacted Bridgewater's clients to tell them the firm fucked up, had miscalculated things and was over-exposed to duration risk (basically meaning they owned too many bonds, as you say). The studying of this risk from bonds and how to "mitigate" it is ongoing at Bridgewater. Kinda hard to recommend a portfolio from a guy who admits it is broken and is still trying to fix it.
I've seen chollida1 comments in other finance-related threads and I think he knows his stuff. On this one though I agree with you, that portfolio has some serious issues and I would not feel comfortable recommending it to the average person as is.
Here is an article talking about Ray Dalio recognizing this "all weather" portfolio was bad and they needed to make corrections: https://www.bloomberg.com/news/articles/2013-08-14/dalio-pat...
Re: Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
#76Earlier quoted context omitted.
> see: https://www.principles.com/ This is a very, very good read. Thanks for sharing.
// DISCLAIMER: I work there. For those who've built tech companies up from the 10 to 1000 people range, there's a lot in that link that's very easy to recognize. If you interpret back from the more traditional business lingo, you will recognize key 'iterative development' ideas applied outside engineering. This allows a sizable 30 year old enterprise to handle new ideas much more as a tech startup would. On the main…
//Disclaimer I don't work there. But I know people who do.
While there are some articles out there bashing Bridgewater's work culture (similar to how Amazon's work culture got attacked in the press), the people I know who work at Bridgewater like it and find the work interesting and feel they are well compensated. Though, no one I know who works there had any finance background before taking the job and that seems to be OK.
Just curious if you have any thoughts on if previous finance experience before working at Bridgewater is a good thing or bad thing or irrelevant? And is there any connection between those employees that succeed at BW and whether they have previously worked in finance?
Re: Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
#77Earlier quoted context omitted.
Ray Dalio is a fascinating person. He purchased a one-word .com to share his personal and management principles, and now he is attempting to train a learning system to automate and preserve his decision-making. There's a movie script somewhere in here. Exaggerate the narcissism, advance the science 50-100 years and we've got an eccentric billionaire that causes an artificial intelligence uprising. Like something betw…
The protagonist in Billions seems to be basically an evil version of Dalio. I think characters based on him have made it to the screen a few times already...
Billions is actually based on Steven Cohen and his hedge fund, SAC Capital. It was bumped down to a family office for insider trading, and subsequently rebranded as Point72.
Aside from basic inspiration, the plot bears almost no resemblance to the actual hedge fund or Cohen himself.
Re: Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
#78Earlier quoted context omitted.
>It's challenging enough to translate simple trading systems into machine code I can attest to this from my experience with a bot I'm trying to build to handle my personal finances. When I sat down to try and encode the seemingly simple decisions I make like whether to pay a bill now or wait until the next check, things got really complicated really quickly.
I'm struggling a lot to get access to my bank's "bill pay" interface. Any recommendations for banks that support building out automation like this? There are very small things I'd like to implement (budgeting, auto-categorization of expenditures) and some type of bill pay as well.
I can't really help you on bank API's. My bot uses webdriver.
Actually I can help with that: https://openbankproject.com/for-developers/
Re: Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
#79Earlier quoted context omitted.
> see: https://www.principles.com/ This is a very, very good read. Thanks for sharing.
// DISCLAIMER: I work there. For those who've built tech companies up from the 10 to 1000 people range, there's a lot in that link that's very easy to recognize. If you interpret back from the more traditional business lingo, you will recognize key 'iterative development' ideas applied outside engineering. This allows a sizable 30 year old enterprise to handle new ideas much more as a tech startup would. On the main…
It sounds to me like what he's building is a lot closer to a custom version of an issue tracking product than an artificial version of Dalio's brain.
Is this accurate?
Re: Hedge Fund Is Building an Algorithmic Model From Its Employees’ Brains
#80> Mr. Dalio has the highest stratum score at Bridgewater, and the firm has told employees he has one of the highest in the world.
So this billionaire is designing a human-ranking system based on some criteria on which he scores number one in the world?
In examining a system for bias I certainly hope they factor in the fact that the guy who paid billions for scientists to research factors under the "total human awesomeness scale" also somehow managed to find that the guy signing all the cheques was the same guy scoring a perfect 10 million every time.
I wonder if the scientists working on quantifying human greatness for Kim Jong-Un are using the same scale?
Couch it in whatever scientific BS you want, it sounds like we just read some sort of billionaire's ego-rotica.