Bridgewater Posts September Gains in Pure Alpha, All-Weather Funds

Oct 12 2016 | 12:24am ET

Ray Dalio’s Bridgewater Associates posted positive returns in all of its main strategies in September, with the firm’s two Pure Alpha macro funds gaining 0.5% and 0.3%, respectively, and its flagship long-only All Weather fund returning 0.9%.

The returns were reported by Bloomberg on Monday, citing unidentified persons familiar with the matter. 

With September’s gain, Bridgewater’s Pure Alpha II has narrowed losses to -10.3% for the year to date through September 30, according to the Bloomberg article, while Pure Alpha I is now down -6.7%. The All-Weather fund, which follows a risk-parity approach, is up 14.1%. 

Risk parity relies on diversification across equities, fixed income, emerging markets, commodities, etc. to manage risk, and often uses leverage to boost returns from a relatively diluted basket of components. The strategy is inherently tied to beta, not alpha, and came under pressure in 2015 as markets sold off risk en masse and asset classes fell across the board. 

Founded in 1975 in a two-room apartment, Westport, CT-based Bridgewater is the world’s largest hedge fund manager, responsible for around $150 billion in assets for institutional investors, foreign governments, central banks, corporate and public pension funds, university endowments and charitable foundations. 

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