NEW YORK, July 6 (Reuters): Hedge fund manager Bridgewater Associates' flagship Pure Alpha 18 per cent volatility fund gained 32.2 per cent 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 per cent.
The fund posted gains in 65 per cent of the markets where it trades, beating a historical average of 55 per cent.
Since its inception in 1991, Pure Alpha has returned an average of 11.4 per cent 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.
Bridgewater's flagship fund posts gains of 32pc through June
FE Team | Published: July 06, 2022 23:49:09
Bridgewater's flagship fund posts gains of 32pc through June
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