Bridgewater’s Flagship Hedge Fund Gains 32% for First Half of Year

(Bloomberg) — Bridgewater Associates posted a 32% return for its flagship hedge fund through the first half of 2022 as it benefited from increased market volatility, according to a person familiar with the performance.

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The firm founded by Ray Dalio told investors that the Pure Alpha II fund climbed 4.8% in June, boosting the annualized return since its 1991 inception to 11.4%, the person said, asking not to be identified because the results aren’t public.

Like many other macro funds, Bridgewater’s Pure Alpha strategy is rebounding after years of struggle, eking out a nominal annualized gain over a decade before posting a return of about 8% in 2021. It had lost 12.6% in 2020, and several institutional clients pulled their money.

Macro funds are flourishing as central banks raise interest rates to combat surging inflation, which has been exacerbated by soaring energy prices. Bridgewater has made money in 65% of the markets in which it trades, the person said, with winning bets on interest rates, stocks, commodities, sovereign and corporate credit, and developed-market currencies, among others.

The firm, with about $150 billion of assets under management including hedge funds and long-only funds, recently overhauled its leadership team. It named Nir Bar Dea and Mark Bertolini as co-chief executive officers and created an investment committee that includes co-Chief Investment Officers Greg Jensen and Bob Prince.

Read more: Bridgewater Names Bar Dea, Bertolini CEOs as McCormick Quits

(Updates with winning bets in fourth paragraph, co-CEOs in fifth.)