Greg Jensen: Building Bridgewater, mastering AI and the power of radical transparency
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
Greg Jensen, Co-CIO of Bridgewater Associates, discusses the three major forces reshaping global finance and his investment philosophy. The conversation covers his transformation from building expert systems to developing artificial intelligence for investing, spanning over 30 years at the world's largest hedge fund. (00:34)
- Core themes include the shift to modern mercantilism as a reaction to China's rise, the AI resource grab for power and semiconductors, and the dangerous concentration of capital in US markets
Speakers
Greg Jensen
Greg Jensen is Co-CIO of Bridgewater Associates, the world's largest hedge fund with $1.3 trillion in assets under management. He joined Bridgewater straight from Dartmouth in 1996 and has spent 30 years building systematic approaches to understanding markets and the global economy. Jensen was an early investor in OpenAI (2016) and Anthropic, and led the development of Bridgewater's "Secure Garden" platform that systematizes 50 years of investment knowledge into algorithms.
Nicolai Tangen
Nicolai Tangen is CEO of Norges Bank Investment Management, which manages Norway's $1.8 trillion sovereign wealth fund. He hosts the "In Good Company" podcast, interviewing leading figures in business and finance to share insights with global investors.
Key Takeaways
Compound Knowledge Through Radical Discipline
Jensen emphasizes that Bridgewater's success comes from systematically capturing and building upon institutional knowledge. (40:00) The firm requires all insights to be written down and translated into algorithms, stored in their "Secure Garden" platform. Jensen implemented a strict policy: "It doesn't exist unless it's compounded. You get no bonus, nothing that you did... If that knowledge is not in what we call our secure garden, it does not count. Zero, you get nothing." This creates a living repository of 50 years of investment wisdom that both humans and AI can access and build upon.
Survive First, Then Compound Wealth
Rather than chasing the highest returns, Jensen advocates for a survival-first investment approach. (31:00) He explains: "The way I would take your $100 is to say, How do we survive in the wide range of possible worlds? Rather than try to pick the best thing." This philosophy focuses on avoiding catastrophic losses while maintaining exposure to upside opportunities. Jensen believes this approach leads to superior long-term compounding because staying in the game is more important than hitting home runs.
Modern Mercantilism Requires Portfolio Diversification
The shift away from globalization toward nationalist economic policies creates new investment risks that most portfolios aren't prepared for. (00:47) Jensen warns that the concentration in US assets that worked for 15 years may be a trap going forward. He advocates for much more global diversification, noting that "Most people have moved away from diversification because it hasn't worked for fifteen years... I think it's mostly a trap." The rise of populist policies worldwide creates unpredictable policy changes that favor diversified approaches.
AI Investment Phase Shifting to Resource Constraints
The AI boom is transitioning from a growth story to a resource grab for power, chips, and scientific talent. (12:07) Jensen identifies three critical constraints: power infrastructure, semiconductor supply, and top-tier AI scientists (fewer than 1,000 globally). This creates a more dangerous investment environment where exponential growth becomes physically impossible to sustain. Companies must secure these resources years in advance, leading to vendor financing deals and ecosystem lock-in strategies rather than pure market competition.
Radical Transparency Accelerates Decision-Making
Bridgewater's culture of radical transparency isn't just philosophical—it's a practical tool for better decision-making. (59:58) Jensen explains that transparency must flow upward: "The people that need the feedback the most... are the people at the top of the organization." The firm measures managers by how much negative feedback they receive, with the best managers getting the most criticism. This system fights against human nature and hierarchical biases that typically prevent organizations from surfacing their best ideas and catching critical mistakes early.
Statistics & Facts
- Bridgewater Associates manages over $1.3 trillion in assets and employs 1,300 people globally, making it the world's largest hedge fund. (49:11)
- There are fewer than 1,000 cutting-edge AI scientists globally, creating an intense talent shortage that constrains the entire industry's development. (16:59)
- US support among global voters saw the biggest collapse from 2024 to 2025 in recorded history, reflecting growing international tensions over trade policies. (21:41)
