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. 


In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of