Bridgewater Gains 7.8% in December as One Big Month Saves Year

Bridgewater Gains 7.8% in December as One Big Month Saves Year

(Bloomberg) — Ray Dalio’s Bridgewater Associates posted a December return of seven.8% by way of Wednesday for its flagship hedge fund and is now poised to guide its greatest annual efficiency since 2018, after a lackluster 11 months.

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The $150 billion agency’s Pure Alpha II fund was up 8.14% on the 12 months, in line with an individual accustomed to the efficiency who declined to elaborate on what wagers contributed to the December outcomes.

Rising U.S. equities could have helped. The S&P 500 gained 5% this month by way of Wednesday and is buying and selling close to a document excessive, and European inventory indexes additionally superior. Bridgewater may have taken income on bets that the yield-curve would flatten following mid-December’s Federal Reserve assembly — a commerce that has been well-liked amongst fixed-income traders since Might.

Like a lot of its friends, Bridgewater’s macro fund has struggled for the previous decade, returning an annualized 1.6% for the ten years by way of November. The agency misplaced 12.6% final 12 months, and several other institutional purchasers pulled their cash.

In coming days, the world’s largest hedge fund could identify somebody to succeed Chief Govt Officer David McCormick, who’s anticipated to announce that he’ll search the Republican nomination for a U.S. Senate seat in Pennsylvania.

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