Hedge Funds
Bessent tells closed-door Robin Hood investor event he sees no systemic AI risk
The Treasury Secretary, interviewed by Bridgewater CEO Nir Bar Dea, rejected dotcom comparisons at a fundraiser closed to the press.
HedgeWeekly Hedge Fund Desk ·
US Treasury Secretary Scott Bessent told hedge fund managers and other investors at the J.P. Morgan / Robin Hood Investors Conference in New York on October 21 that he does not see a systemic problem in the AI investment boom, the Financial Times reported. He spoke during a 30-minute onstage interview with Bridgewater Associates chief executive Nir Bar Dea.
Bessent, himself a former hedge fund manager, dismissed parallels with the dotcom era, pointing to the profitability of the leading AI companies and the large personal stakes held by their founders, according to reports of the session. He said AI is likely to lift US productivity, while arguing the industry has done a poor job of explaining those gains to the public.
The charity event, now in its 14th year, charges at least $7,500 a ticket and does not admit journalists. Stanley Druckenmiller and Point72 founder Steve Cohen were also on this year's programme. A Treasury spokesperson said Bessent's comments had already been made publicly, and Robin Hood said the conference has long run off the record; it raised more than $1m this year and close to $72m across its 14 editions.
Why it matters: the comments land as hedge funds cut tech exposure at the fastest pace in a decade and press their shorts, with leverage tied to AI-linked equities under scrutiny. A relaxed stance from the official who chairs the Financial Stability Oversight Council suggests little near-term appetite in Washington for curbs on AI-related financing, though the closed format has drawn criticism over selective access to policymakers.