What signals do Dalio send out to close positions

category:Finance
 What signals do Dalio send out to close positions


Bridgewater starts to close short position on European stock market

30 billion a week

On March 20, according to breakoutpoint, a data analysis company, Bridgewater began to close its positions after short selling European stocks, reducing its large European short trading by more than 70 times.

However, there is still a short position of more than 0.5% for key companies. For example, all five major short positions for Spanish companies have been cut, for example, BBVA, Banco Santander and amadeusitgroup, from 0.89% to 0.69%.

Short selling in Europe has brought considerable profits to bridge water.

German equities, which were short for 4.4 billion euros, also fell 30% during the period.

According to foreign media statistics, the operation of bridge water is estimated to make about 4 billion euros (about 30 billion yuan).

In response, a spokesman for Bridgewater said: although we will not comment on specific positions, Bridgewater trades in more than 150 markets around the world, so Bridgewater has many interrelated positions, which are usually used to hedge other positions, and these situations often change. So its not right to look at any one location at any time to try to determine the overall strategy.

before

This contrasts with the week of March 13, when Bridgewater established a short position of 14 billion euros (US $15 billion, RMB 108.1 billion), betting that European companies stocks continued to plummet as a result of the epidemic.

It has established a huge short position of 43 European companies, mainly betting on large companies in France, Germany, the Netherlands, Spain and Italy.

At that time, qiaoshui had at most 16 shorting companies in France with a position of 4.8 billion euros, followed by 12 in Germany with a position of 4.4 billion euros, 5 in Holland and 5 in Spain with a position of 2.8 billion dollars and 1.3 billion euros, 3 in Italy with a position of 800 million euros.

These countries are European countries with more serious epidemic situation.

However, during the period, after the multi-national stock market circuit breaker, many European countries have issued short selling bans, including Italy, Spain, France, Belgium, Austria, Greece, etc.

Qiaoshuis performance plummeted

Closing positions or dealing with performance difficulties

Recently, however, the bridge water has been exploded this year. Therefore, some foreign media pointed out that qiaoshuis rush to close positions may be to cope with the recent performance difficulties.

In the daily observation of the bridge water provided by Dalio on March 18, it also disclosed the performance of the fund during the bridge water period as of March 18 this year:

All day funds using risk parity strategies fell by 9% - 14%, while fully hedged neutral strategies fell by 7% - 21%.

However, Dalio said that this kind of retreat has happened before, and every time the net value has also returned. As in the past, we have been maintaining liquidity, and this loss is within tolerance.

Global companies will lose half of US GDP

In an interview with CNBC recently, Dario pointed out, what never happened in our lifetime We are facing a crisis. We now estimate that in the United States, the loss at the corporate level is about $4 trillion, and around $12 trillion globally. By the end of 2019, the U.S. gross domestic product (GDP) had exceeded $21 trillion. This means that the forecast shows that the crisis will bring about half of the economic losses of the US GDP to global enterprises.

Soros is also reducing short positions

Meanwhile, sfmukmanagement, the UK hedge fund arm of Soros Fund Management, has significantly reduced its net position in the UK over the past month. As we all know, George Soros short the pound during the Black Wednesday in September 1992, which reportedly brought Soros a billion pounds gain. But according to another breakout point study, sfmukmanagement has reduced its headroom position by more than 75% since February 24. A spokesman for Soros Fund Management said the company had nothing to add. Source: Yang Qian, editor in charge of China Fund News

Meanwhile, sfmukmanagement, the UK hedge fund arm of Soros Fund Management, has significantly reduced its net position in the UK over the past month.

As we all know, George Soros short the pound during the Black Wednesday in September 1992, which reportedly brought Soros a billion pounds gain. But according to another breakout point study, sfmukmanagement has reduced its headroom position by more than 75% since February 24.

A spokesman for Soros Fund Management said the company had nothing to add.