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World’s Largest Hedge Fund In Trouble? Bridgewater Pure Alpha Loses Over 10% In Two Weeks
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden / 02/18/2016 10:30
In the days after the August 24 ETFlash crash, the world’s “risk parity” funds had a near-death experience when as a result of the furious disconnect between stocks, Treasurys and most other asset classes, the underlying correlation models failed, leading to dramatic declines for such giant funds as Bridgewater’s $70 billion “All Weather” fund.
For now risk parity may be faring ok, but something else appears to have snapped at the world’s largest hedge fund, or rather its more older “Pure Alpha” fund, which employs a traditional hedge fund strategy that actively bets on the direction of various securities, including stocks, bonds, commodities and currencies, by predicting macroeconomic trends. The fund, which manages over $80 billion, has returned 12.8 percent since inception in 1991 and had a 4.7% return in 2015 offsetting the 7% drop in the All Weather fund.
The problem is that Ray Dalio’s stock picking, perhaps distracted by media coverage of the ongoing insider fight at the top, first reported by the WSJ on February 5, has not been doing too well as of late.
As the following monthly report shows, as of January 31, Pure Alpha fund was up a tidy 0.8%. Hardly bad in the current market environment.
The post World’s Largest Hedge Fund In Trouble? Bridgewater Pure Alpha Loses Over 10% In Two Weeks appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/18/worlds-largest-hedge-fund-in-trouble-bridgewater-pure-alpha-loses-over-10-in-two-weeks-2/
