“What we see by most of those is that the U.S is encountering more of those risky elements, also other things like education levels, competitive advantages and so on are on decline,” he said. While technology is still a bright spot for the U.S., the rate of change is slower than China, he added.
Bridgewater has been managing Chinese state money since 1993, including about $5 billion for the sovereign wealth fund China Investment Corp. and the State Administration of Foreign Exchange.
In November, Bridgewater raised 8 billion yuan ($1.3 billion) for a new private fund in China, making it the largest global hedge fund player in the country.
Dalio caused a stir at home with his China comments in a Nov. 30 CNBC interview, leading McCormick to tell staff he disagreed with the billionaire’s views.
“Should I not invest in the United States because of our own human rights issues and other things?” Dalio said at the time. “As a top-down country,” he added of China, “they behave like a strict parent.”
Bridgewater’s flagship Pure Alpha II fund returned about 8% last year, saved by a strong December. Like many peers, its macro hedge fund struggled for the past decade, gaining an annualized 1.6% for the 10 years through November. The firm lost 12.6% in 2020, and several institutional clients pulled their money.
This article was provided by Bloomberg News.