Thursday, 20 October 2016
Last updated 37 min ago
Sep 16 2013 | 12:23pm ET
Despite an effort to cut risk, Bridgewater Associates' All Weather Fund extended its losses in August.
The $70 billion risk-parity hedge fund shed a further 1.4% last month and is down about 7% on the year, Reuters reports. The huge fund lost 8.4% in the second quarter, including a 6.22% drop in June.
Bridgewater rejiggered the fund's models in the second quarter after determining that the strategy was too vulnerable to interest-rate volatility. The changes were the first major alterations to the strategy since it launched in 1996.
All Weather aims to return 5% to 7% above cash per year, and returned 14.7% last year.