Bridgewater Associates erased most of the returns it notched through this year’s first three quarters, ruining what was shaping up to be the hedge fund giant’s best annual performance in more than a decade.
The Pure Alpha fund tumbled 13.2% in the fourth quarter through Nov. 25, cutting its year-to-date gain to 6%, according to people familiar with the matter. It had surged 22% through September, putting it on track for its best year since 2010, when it rose about 27%. The vehicle is a less-leveraged version of the firm’s flagship Pure Alpha II fund.
A representative for Westport, Connecticut-based Bridgewater declined to comment.
Bridgewater’s macro-trading peers have made money for most of this year by betting on rising interest rates, a strong dollar and falling stocks. Those trends reversed in recent weeks as the Federal Reserve signaled that it would slow the pace of monetary tightening.
Yields on 10-year Treasuries dropped to about 3.5% now from roughly 4.2% in early November. The dollar has tumbled against all major currencies since the end of September, and equity markets rebounded sharply.
In October, Bridgewater founder Ray Dalio relinquished control of the firm that now manages about $150 billion, handing the reins to the next generation of leaders. Although he’s no longer a co-chief investment officer, he still mentors the firm’s money-management team.
This article was provided by Bloombeg News.