Bridgewater Associates gave 32% returns to its investors for its flagship hedge fund in the first half of 2022. The fund’s performance was an outcome of increased volatility in the market, according to someone familiar with the firm’s performance.
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The Westport, Connecticut-based firm was founded in 1975 by Ray Dalio and served institutional clients, among others; it told the investors that their Pure Alpha II fund increased 4.8% in June and boosted the annualized return to 11.4 % since it started in 1991. The person who gave the information declined to be identified as the result is not yet public.
As per Bloomberg News, the Bridgewater Pure Alpha fund strategy is rebounding like other macro funds after years of struggle. The fund has eked out minimal annualized gains for more than a decade before posting 2021, a return of approximately 8%. In 2020, it lost about 12.6% in fund value, and several institutional clients had withdrawn their investments.
The macro funds are flourishing as central banks have raised their interest rates to combat rising inflation further exacerbated by rising energy prices. According to the person, Bridgewater associates made profits in about 65% of the market in which it operates. The firm made winning bets on stocks, interest rates, commodities, sovereign credit, corporate credit, and currencies of developed markets.
Bridgewater has an asset under management (AUM) of about $150 billion, including log term funds and hedge funds. The firm’s leadership team has recently overhauled the assets. The firm has created a new investment committee, including the newly appointed Co-Chief Executive Officers Mark Bartolini and Nir Bar Dea. The two Co-Chief Investment officers on the committee are Bob Prince and Greg Jenson.
