When Ray Dalio announced his transition out of management at the world’s largest hedge fund Wednesday, he unwittingly touched on an issue that bedevils the investment industry at large. Perhaps the most difficult aspect of developing a hedge fund can be seen in wearing the dual hats of logical management and that of an often creative investment strategist. This high-wire balancing act is additionally challenging when the unique concept of radical truthfulness and transparency can result in fraying the polite human sensibilities, resulting in nearly 30% of new employees leaving the firm after two years. Jon Rubinstein, the technical guru hired from…
Dalio Steps Back From Management As Rubinstein Might Realize An Algorithm Can’t Replicate His Mind
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.