Bridgewater Erases Most of Its 2022 Gains After Two-Month Rout (2024)

FAQs

Bridgewater Erases Most of Its 2022 Gains After Two-Month Rout? ›

In 2022 and 2023, Pure Alpha notched strong gains, only to reduce or erase them by December of each year. The year 2022 would have been one of Bridgewater's best annual performances if it hadn't been for a two-month rout at year-end. This year, the fund jumped 15.8% through March 26 — trouncing an index of macro funds.

Global Hedge funds returned 2.6% in the fourth quarter of 2022 and -6.8% for all of 2022, according to last year's report.

Billionaire Christopher Hohn's TCI led the annual ranking by 2023 returns, which were $12.9 billion after fees, while Citadel, Millennium Management and D. E. Shaw, all multi-strategy firms, were the top three hedge funds by lifetime gains.

What was Bridgewater Associates, LP's average return in the last 12 months? Bridgewater Associates, LP's average return in the last 12 months was 11.73%. What was Bridgewater Associates, LP's average return in the last 3 years? Bridgewater Associates, LP's average return in the last 3 years was 8.53%.

Bridgewater's Flagship Macro Fund Lost 7.6% Last Year

Bridgewater Associates's flagship hedge fund lost 7.6% last year, with all of the drop coming in the last two months of 2023, according to people familiar with its performance.

For example, if a hedge fund generates long-term capital gains, by holding an investment for more than one year, investors will pay taxes on such gains at the long-term capital gains rate.

Who Is the Richest Hedge Fund Manager? Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.

Most hedge and private equity funds target a net IRR of 15% for their investors (after fees). This provides their investors with a meaningful premium over historical average stock market returns of 8%.

How successful is Bridgewater? ›

When it comes to successful investment funds, everyone wants to know the secret sauce. Bridgewater Associates, founded in 1975 by Ray Dalio, is no exception. As of 2022, Bridgewater has posted the second-highest gains of any hedge fund since its inception.

About Ray Dalio's All Weather

Ray Dalio's All Weather portfolio is an investment strategy designed to perform well across different economic conditions. The goal of the All Weather portfolio is to generate consistent returns while minimizing risk, regardless of the economic environment.

Nir Bar Dea is Bridgewater's CEO, responsible for setting and driving the strategic goals…

The firm does not have any individual clients. It generally requires clients to have a minimum of $7.5 billion of investable assets. Bridgewater has several strategies: Pure Alpha, Pure Alpha Major Markets, All Weather and Optimal Portfolio.

Bridgewater Associates said that two former executives who have accused the world's largest hedge fund of favoritism, age and sex discrimination turned to court and the media in a bid to secure a “large payout.”

The flagship fund had enjoyed a stellar 2022 with a 38% gain, marking its best year on record. The Miami-based firm's tactical trading fund gained 14.8% in 2023, while its equities fund, which uses a long/short strategy, returned 11.6%, said the person who spoke anonymously because the performance numbers are private.

Reality Check: S&P 500 Outperforms Hedge Funds 🚀

Data shows that hedge funds consistently underperformed the S&P 500 every year since 2011. The average annual return for hedge funds was about 4.956%, while the S&P 500 averaged 14.4%.

But lately, Wall Street has been wondering if hedge funds have reached Peak Pod. Returns dropped markedly at many multistrats in 2023. The average fund in the class returned 5.4%—even as the Nasdaq Composite and the S&P 500 cranked out total returns of 45% and 26%, respectively.