Dalio's Bridgewater Forms Shanghai Investment Management Unit

May 16 2016 | 9:56pm ET

Bridgewater Associates has created an investment management unit in Shanghai, according to Chinese government filings, suggesting the world’s largest hedge fund manager is looking to expand it’s presence in the country. 

The new division was established in Shanghai's Free Trade Zone on March 7, Reuters reported, with registered capital of 50 million yuan ($7.67 million). The information was reportedly listed on the website of China's State Administration for Industry & Commerce.

The government filing names Bridgwater founder Ray Dalio as the registered legal representative of the unit, which is licensed to perform investment management and investment advisory work, Reuters said.

It was set up as a wholly owned foreign entity, a Chinese legal construct designed to allow foreign companies to operate in China without partnering with local firms. Despite a chorus of negative sentiment on Wall Street about China’s overleveraged economy, poor currency management and the potential for a sea of bad loans to derail financial markets there, the establishment of a beachhead in Shanghai is likely a contrarian precursor to offering yuan-denominated macro- and fixed-income Bridgewater strategies to mainland and international investors. 

Founded by Dalio in 1975 in a two-room apartment, Westport, CT-based Bridgewater is the world’s largest hedge fund manager, responsible for $155 billion in assets for institutional investors, foreign governments, central banks, corporate and public pension funds, university endowments and charitable foundations.


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