Bridgewater Turns $13.8 Billion Profit For Investors

Feb 29 2012 | 4:49pm ET

Bridgewater Associates actually made more money for its clients last year than Paulson & Co. lost for its investors, a new report shows.

Bridgewater's Pure Alpha strategy earned $13.8 billion for investors in 2011, according to LCH Investments. By contrast, Paulson lost $9.6 billion, almost 8% of the total net losses for the entire hedge fund industry last year.

Paulson's woes came as most of its hedge funds fell by double digits, with its largest fund losing 51%. Pure Alpha rose by less than half that, but Bridgewater manages more than four times as much money as Paulson.

Still, 2011 was one for Bridgewater's mantle: Last year's profits account for almost 40% of the $35.8 billion in total that Pure Alpha has made for clients since its inception 37 years ago.

Other winners last year included Brevan Howard Asset Management's Master Fund, which made $3.2 billion for clients, and Baupost Group, which made $400 million. Soros Caxton Associates' Global Fund and Farallon Capital Management were essentially flat last year, while Soros Fund Management's flagship Quantum Fund lost $3.8 billion in 2011, Appaloosa Management $800 million and Moore Capital Management $300 million.

Despite those losses, Soros and Paulson remain two and three in LCH's ranking of the most profitable hedge funds, with net gains of $31.2 billion and $22.6 billion, respectively, since inception. Baupost is up $16 billion since its launch, Brevan Howard $15.7 billion, Appaloosa $13.7 billion, Caxton $13.1 billion, Moore $12.7 billion and Farallon $12.2 billion.

One new fund joined the most-profitable list after last year: SAC Capital Advisors, which has earned clients $12.2 billion since its inception in 1992.

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