Sunday, 19 February 2017
Last updated 1 day ago
Jan 8 2016 | 8:56pm ET
Ray Dalio’s flagship Bridgewater All Weather hedge fund fell by approximately 7% in 2015, its second annual loss in three years.
The fund seeks to generate positive returns in both good and bad markets. As a so-called risk-parity vehicle, it is long-only and doesn’t hedge its portfolio, preferring instead to protect against market swings by actively allocating across global stocks, bonds and currencies. Such funds typically rebalance portfolio exposure daily based largely on volatility, making the measure an important portfolio management element. Accordingly, last year was particularly challenging.
It was the second losing year out of the last three for the $70 billion fund, which lost 4% in 2013 before recovering in 2014 with an 8.6% gain, according to an article in Forbes. Last fall was particularly volatile; the fund lost 4.2% in August and 1.9% in September before rebounding 4.1% in October.
It was not all bad for Bridgewater last year, however. Dalio’s $81 billion Bridgewater Pure Alpha Fund gained 4.7% last year, while the firm’s $15 billion Pure Alpha Major Markets Fund rose 10.6%, according the article.
Founded in 1975, Westport, CT-based Bridgewater is the world’s largest hedge fund manager, managing some $154 billion for institutional investors, foreign governments, central banks, corporate and public pension funds, university endowments and charitable foundations.