Bridgewater Associates It wiped out most of the returns it made in the first three quarters of the year, ruining what it was trying to achieve for the best annual performance of any hedge fund giant in over a decade.
The pure alpha fund fell about 13% from the fourth quarter to November, easing its year-to-date gains to 6%, according to a person familiar with the matter. It surged 22% at the end of September and is on track for its best year since 2010, when it was up about 27%.
Bridgewater’s larger, more leveraged Pure Alpha II fund is down about 20% in the two months to Nov. 30, dwindling to 7.8% in 2022, one of the people said. Stated.
A representative for Bridgewater, based in Westport, Connecticut, declined to comment.
Bridgewater’s macro-trading peers have profited for most of this year by betting on higher interest rates, a stronger dollar and lower stocks. Those trends have reversed in recent weeks as the Federal Reserve signaled it would slow the pace of monetary tightening.
Yields on 10-year government bonds have fallen from about 4.2% in early November to about 3.5% now. The dollar has fallen against all major currencies since the end of September, and stock markets have rebounded sharply.
In October, Bridgewater founder Ray Dalio relinquished control of the company, which currently manages about $150 billion, handing the reins to the next generation of leaders. Although he is no longer Co-Chief Investment Officer, he still leads the company’s money management team.
