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Bridgewater Associates’ flagship fund recorded gains of more than 32% in the first half of 2022, outshining the broader market’s performance by quite a large margin.
The fund, known as Pure Alpha, received a significant boost after the Federal Reserve’s aggressive rate hikes to curb the record-high inflation. Surging interest rates led to severe price swings over the past few months, pushing down the S&P 500 by around 20% in H1 2022.
Pura Alpha saw gains in roughly two-thirds of the markets where it trades, compared to a historical average of 55%. Since it was launched in 1991, the fund has recorded an average annual return of 11.4%.
Bridgewater Associates, a 47-year-old investment management firm managed by American billionaire hedge fund manager Ray Dalio, expects to continue benefiting from the current tightening environment.
Dalio told investors the fund recorded gains across multiple asset classes, which has notably overshadowed losses in some assets like bonds and emerging market currencies.
