This week, we speak with Rebecca Patterson, who serves as director of investment research at the world’s largest hedge fund, Bridgewater Associates. In addition to shaping the firm’s research agenda, Patterson is a member of the executive committee, investment committee, and commercial and business strategy committee, and helps lead the firm’s diversity and inclusion efforts. She previously served as chief investment officer at Bessemer Trust, where she oversaw $85 billion in client assets; she is currently a member of the Council on Foreign Relations.
We discuss her unusual career path, which took her from a career in journalism at Dow Jones to JPMorgan to Bridgewater. She explains how she developed an interest in currencies and commodities before diving deeply into equities.
Patterson describes how the one-two punch of monetary and fiscal stimulus led to a “Demand Shock” that has overwhelmed goods production. Even though global manufacturers ramped up production to 5% above pre-pandemic levels, demand for goods has risen 20%. This has made the supply chain issues even worse and explains a large part of the global inflation spike we are currently experiencing.
She also explains why investors in China should pay attention to specific government speeches — China’s important policymakers telegraph future changes in public speeches. It’s much easier than Kremlinology if you know whose speeches to listen to.
A list of her favorite books is here; A transcript of our conversation is available here.
You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Stitcher, Google, Bloomberg, and Acast. All of our earlier podcasts on your favorite pod hosts can be found here.
Be sure to check out our Masters in Business next week with James Anderson, partner at Baillie Gifford, the Edinburgh, Scotland investing giant that manages $470 billion in client assets. He runs FTSE-100-listed Scottish Mortgage Investment Trust, a $23.5 billion fund, where since 2001, he has generated returns of 1,700%.
The Lincoln Highway by Amor Towles
A Gentleman in Moscow by Amor Towles
Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail by Ray Dalio
No Ordinary Time: Franklin and Eleanor Roosevelt: The Home Front in World War by Doris Kearns Goodwin