New Dalio book offers deep dive on 2008 collapse

August 22, 2018

Greenwich billionaire Ray Dalio teased Thursday a new book, which he says will offer insights into how his Westport-based hedge fund Bridgewater Associates navigated the financial crisis of 2008.

Titled “A Template for Understanding Big Debt Crises,” Dalio plans to release the book on Sept. 10, days prior to the 10-year anniversary of the collapse of Lehman Brothers, offering it as a free PDF, a $50 print edition to be sold via Amazon, or in eBook format for $15.

Dalio’s previous tome “Principles: Life & Work” topped Amazon’s and the New York Times’ list of bestselling books, with information on his newest book online at Principles.com.

Bridgewater Associates is the world’s largest hedge fund with $163 billion in assets under management as of this year, with Dalio ranked by Forbes as Connecticut’s richest resident with wealth of $15.9 billion.

“As an investor, my perspective is different from that of most economists and policymakers because I bet on economic changes via the markets that reflect them, which forces me to focus on the relative values and flows that drive the movements of capital which in turn drive these cycles,” Dalio stated in a Wednesday post on his LinkedIn page. “I’ve found there is nothing like the pain of being wrong or the pleasure of being right as a global macro investor to provide the practical lessons about economics unavailable in textbooks.”

In addition to the 2008 crisis, Dalio examines the Great Depression and the prior economic collapse of Germany in the years after World War I, and posits a template that can be applied to dozens of other historical debt crises.

The new book is one of multiple extracurricular pursuits of late for Dalio, with the billionaire backing the “OceanX” project by producer James Cameron to explore the deeps, in collaboration with the BBC, the Woods Hole Oceanographic Institution in Massachusetts and other groups.

Alex.Soule@scni.com; 203-842-2545; @casoulman

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