The king of hedge funds justifies its bearish position in Europe by seeing it as the victim in Ukraine

ray daliofounder of Bridgewater Associates, the world’s largest hedge fund with $150 billion in assets under management, finds itself in the war of Ukraine the justification for the strong increase in bearish positions that he made in June on shares of Europe. Dalio closed the month increasing its attacks by 9,000 million against listed companies in the Old Continent.

The heads of the hedge fund already warned last month that the war had caused a “supply shock, in addition to an already excessive demand, increasing the risk of stagflation to give rise to market conditions not seen since the 1970s (when the fund was founded). In addition, they commented that the geopolitical implications of the war “push them even further” towards “deglobalization”, which makes geographic diversification “more challenging and valuable”, according to their criteria.

the guru of wall street now goes a step further and has published in LinkedIn that the world order is not changing for the better if you have the war in Ukraine as your guide. Dalio’s words are widely followed by both private and institutional investors and serve as a guide to carry out their operations. Bridgewater’s CEO understands that the NATO (mainly made up of European countries) and state Joined they will lose in Ukraine, even if they win the armed conflict.

Putin has declared the victory of Russia in the eastern region of Ukraine and if this fact is confirmed, Dalio believes that Putin’s control over Lugansk It helps to have relevance on the world stage, so Russia would be “a minor loser”. His analysis goes further: “Because the devastation in Ukraine has been much greater than in Russia, and because this will be economically costly for Ukraine and the NATO countries that will pay for the reconstruction, there is also a relative victory here. for Russia”, considers the king of hedge funds.

However, he estimates that “few countries” are taking an iron stance against Russia in favor of clear support for NATO, furthermore “it appears that support within NATO countries themselves in the war is weakening due to the relatively high costs.”

With this framework, the guru has not hesitated to take short positions against the actions of Santander Bank, Iberdrola Y BBVAjust as it happened in 2018 and 2020. The attack against the entity chaired by Ana Swag amounts to 0.63%, the operation on the electricity company led by Ignacio Sanchez Galan adds 0.62% of the share capital and the position in the bank commanded by Charles Torres rises to 0.6%, according to the records of the CNMV. Other prominent positions held by Bridgewater in Europe are in ASML Holding company, Total energies, Sanofi, BNP Paribas, Intesa sanpaolo either Allianz.

On the other hand, Dalio took advantage of his publication on Linkedin to charge once again against the American political class by understanding that fundamental elements of the Constitution are being questioned such as attacking election results or Supreme Court rulings, emphasizing the fact that “the number of populists on the right and left is increasing.”

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The king of hedge funds justifies its bearish position in Europe by seeing it as the victim in Ukraine