Ray Dalio stays loyal to gold

Ray Dalio James Alexander Michie

Ray Dalio Photographer: Jason Alden/Bloomberg

Raymond Dalio is a multi-million dollar investor, hedge fund manager and American philanthropist. Dalio is the founder of investment firm Bridgewater Associates, one of the largest hedge funds in the world. As of January 2018, it is one of the 100 richest people in the world, according to Bloomberg.

Dalio has an unwavering faith in gold. In fact, the billionaire and philanthropist remained loyal to gold even in the midst of investor sales, with Bridgewater Associates retaining its stake in SPDR, iShares Gold. Likewise, even the second quarterly drop in gold was not enough to shake gold’s confidence in multi-billion dollar hedge fund Ray Dalio.

Bridgewater Associates of Dalio maintained its holdings in SPDR Gold Shares, the largest ETF backed by bullion, with 3.9 million shares, and its stake in iShares Gold Trust, the second largest, with 11.3 million shares in the third quarter, according to a regulatory document.

As already mentioned, Bridgewater remained loyal to bullion, even as investors sold off ETF-backed ETF assets falling 2.79 million ounces in the third quarter. Likewise, the first fall of this type since the end of 2016. The attractiveness of the precious metal paradise has declined significantly as the dollar recovered and borrowing costs rose in the United States.

What does the billionaire recommend?

For his part, Dalio recommends gold as a hedge against increased political risk.

The hedge fund also added to its holdings in Barrick Gold Corp., Franco-Nevada Corp., Newmont Mining Corp. and Kinross Gold Corp. in the third quarter. It should be noted that the presentations published this month do not include the current position of hedge funds, which may have changed since the end of the quarter. The submissions do not show non-US values, holdings that are not publicly traded or cash.

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Source: Luzi-Ann Javier | Bloomberg

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