Bridgewater's flagship fund posts gains of 32% through June
Reuters
Published Jul 05, 2022 04:24PM ET
Updated Jul 05, 2022 05:56PM ET
By Carolina Mandl
NEW YORK (Reuters) -Hedge fund manager Bridgewater Associates' flagship Pure Alpha 18% volatility fund gained 32.2% in the first half of the year, according to a source familiar with the matter, beating sharp market declines.
Pure Alpha's return net of fee increase was helped by the Federal Reserve's decision to raise interest rates to tame surging inflation. Increasing rates caused extreme swings in asset prices, the source added. In the first half of 2022, the S&P 500 was down roughly 20%.
The fund posted gains in 65% of the markets where it trades, beating a historical average of 55%.
Since its inception in 1991, Pure Alpha has returned an average of 11.4% annually.
The firm also believes the fund is well-positioned to take advantage of this new tightening environment, said the source.
Bridgewater, founded by legendary billionaire Ray Dalio, told investors on Tuesday the fund posted gains across several different assets. This more than offset some losses, such as in inflation-linked bonds and emerging market currencies.
Pure Alpha's good performance comes in a year the firm reshuffled its top management, appointing two new co-Chief Executive Officers, Nir Bar Dea and Mark Bertolini, and creating a new investment committee, which includes Chief Investment Officers Greg Jensen and Bob Prince, its asset class heads and some senior investors.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.