Bridgewater Plans Liquid Version Of Flagship Hedge Fund

Aug 23 2010 | 1:48pm ET

Bridgewater Associates has always kept the size of its Pure Alpha hedge fund strictly limited—indeed, the fund, which has been closed to new investors for four years, is actually returning money to investors to keep within its capacity constraints. But now the firm plans to experiment with a more liquid version of the tremendously successful strategy.

The Westport, Conn.-based firm, which manages $81 billion, is launching the new vehicle to give current investors in Pure Alpha an opportunity to reinvest the money the firm returns them in the same strategy without exceeding the existing fund’s capacity. But those who have been shut out of Pure Alpha for the last four years will remain shut out: The new strategy, despite investing in “markets that are not capacity constrained,” will be open only to current Pure Alpha investors, Pensions & Investments reports.

Pure Alpha Major Markets is “not a new strategy,” co-chief investment officer Robert Prince told P&I. “It is a limited extension of the capacity of existing Pure Alpha for existing clients. It [uses] the same indicators and markets, just moderately bigger trades in the bigger markets and no change in smaller ones.”

The $58 billion Pure Alpha fund is up about 20% this year. Prince said that clients would be allowed to split their investment between the two funds, and that client demand was not behind the decision to create the new fund.”

“We are not looking to raise assets and we are otherwise closed to new business,” Prince said. “This is a good way to create a limited accommodation to existing clients whose PA assets have risen as a result of good performance.”


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.