Ray Dalio, the founder of mega-hedge fund Bridgewater Associates, has a bleak outlook for investors over the next decade.
Dalio predicts rising asset prices will cause equity returns to average out at 4 percent over the next decade, limiting the Federal Reserve's ability to influence economic recovery.
"I think going forward most investors are not going to be able to produce alpha," Dalio said in an interview during The New York Times' DealBook conference on Tuesday morning. "Alpha is a zero sum."
(Read more: Ray Dalio explains 'How the economic machine works)