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Bridgewater Associates Chief Executive Officer Nir Bar Dea said a fund it launched last year that uses machine learning and AI to make decisions has delivered performance that’s “comparable” to the firm’s human—led strategies.
Bridgewater set up the $2 billion fund last year, and since then it has generated “unique alpha that is uncorrelated to what our humans do,” Bar Dea said Tuesday at the Bloomberg Invest conference in New York, though he didn’t say specifically how much it has returned to date.
Bar Dea said that while he thinks it’s “a fool’s errand” to try to predict what impact AI will have on society, the technology has huge potential for investing, and he urged anyone curious to “get your hands dirty” and try it out.
The hedge fund told investors when it launched the AI fund that it was leaning on proprietary technology that it had been building for more than a decade. It’s part of a broader venture spearheaded by Co-Chief Investment Officer Greg Jensen and was expected at the time to eventually include models developed by OpenAI, Anthropic and Perplexity, among others.
Bar Dea said AI will also affect hiring, with firms increasingly looking to hire humans who can do what machines can’t, as opposed to focusing on commoditized skills.
“We’ve always searched for how technologies can replace what humans are doing, so humans can do what technology can’t do,” Bar Dea said. “We have been shifting the type of humans we bring into Bridgewater for 50 years. That means from really looking for analytical skills and financial backgrounds to people that are conceptual and can ask philosophical questions.”
Bar Dea was named sole CEO in 2023 and quickly embarked on an ambitious strategy meant to increase the company’s profitability by capping the size of its flagship funds, plowing more money and talent into AI and expanding in Asia and equities.
The CEO, who grew up outside Tel Aviv and is a retired major in the Israel Defense Forces, joined Bridgewater in 2015 and rapidly rose through the ranks to become co-CEO in 2022.
Bridgewater was founded by billionaire Ray Dalio, who stepped down as one of the firm’s three co-CIOs in 2022.
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Bridgewater set up the $2 billion fund last year, and since then it has generated “unique alpha that is uncorrelated to what our humans do,” Bar Dea said Tuesday at the Bloomberg Invest conference in New York, though he didn’t say specifically how much it has returned to date.
Bar Dea said that while he thinks it’s “a fool’s errand” to try to predict what impact AI will have on society, the technology has huge potential for investing, and he urged anyone curious to “get your hands dirty” and try it out.
The hedge fund told investors when it launched the AI fund that it was leaning on proprietary technology that it had been building for more than a decade. It’s part of a broader venture spearheaded by Co-Chief Investment Officer Greg Jensen and was expected at the time to eventually include models developed by OpenAI, Anthropic and Perplexity, among others.
Bar Dea said AI will also affect hiring, with firms increasingly looking to hire humans who can do what machines can’t, as opposed to focusing on commoditized skills.
“We’ve always searched for how technologies can replace what humans are doing, so humans can do what technology can’t do,” Bar Dea said. “We have been shifting the type of humans we bring into Bridgewater for 50 years. That means from really looking for analytical skills and financial backgrounds to people that are conceptual and can ask philosophical questions.”
Bar Dea was named sole CEO in 2023 and quickly embarked on an ambitious strategy meant to increase the company’s profitability by capping the size of its flagship funds, plowing more money and talent into AI and expanding in Asia and equities.
The CEO, who grew up outside Tel Aviv and is a retired major in the Israel Defense Forces, joined Bridgewater in 2015 and rapidly rose through the ranks to become co-CEO in 2022.
Bridgewater was founded by billionaire Ray Dalio, who stepped down as one of the firm’s three co-CIOs in 2022.
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