Bridgewater's All Weather Fund Lost 1.9% in September and is Now Down 6% YTD

Ray Dalio’s Bridgewater All Weather Fund lost 1.9% last month and is now down 6% year to date, according to Reuters. It is latest large macro hedge fund to disclose disappointing results for September.

The $70 billion All Weather strategy, one of two flagship portfolios managed by Bridgewater and the firm’s long-only product, utilizes risk parity strategies designed to make money if either stocks or bonds decline. However, as many hedge funds learned last month, such approaches do not always pan out when both fall simultaneously.  

The All Weather strategy famously does not hedge market exposure, relying on varying asset combinations to protect against market turmoil.

October is reportedly looking much better. The All Weather portfolio is up 3.7% for the month through the end of last week, according to Reuters data, which is a bit shy of the S&P 500’s 5.8% gain over the same period but undoubtedly a welcome respite from a tough few months. The portfolio lost 4.2% in August.

Bridgewater is the world’s largest hedge fund manager, with $154 billion in assets under management.