Bridgewater Associates’ flagship macro fund has surged by 26.4 per cent in the first nine months of this year. The impressive gains come as tariff-fuelled market uncertainty boosts the firm and its peers. According to a source familiar with the matter, the hedge fund is on track for its most significant gains since 2010. Bridgewater Associates is a global investment management firm offering a range of investment strategies to institutional clients. The firm utilises systematic and discretionary approaches to navigate global markets.
Hedge funds overall have experienced strong performance this year, benefiting from the rise in US shares and volatility in bond and currency markets, largely driven by US trade wars. The S&P 500 Index climbed 14 per cent through the third quarter. This contrasts with the previous decade, which proved challenging for Bridgewater and other macro funds due to historically low interest rates that quelled market volatility. Between 2012 and 2024, Bridgewater’s Pure Alpha II macro fund posted annualised returns of less than 3 per cent. A Bridgewater spokesperson declined to comment on the recent returns.
Bridgewater, a 50-year-old firm, has been undergoing a transformation since Nir Bar Dea became sole chief executive in 2023. The firm has implemented sweeping personnel changes and reduced assets in an effort to improve performance. Ray Dalio, Bridgewater’s billionaire founder, has completely exited the firm, selling his remaining stake and stepping down from the board earlier this year. In January, the firm appointed veteran macro trader Ben Melkman as deputy chief investment officer, sharing the role with insiders David Trinh and Blake Cecil.
Notably, another fund run by Greg Jensen that uses machine learning and AI, started in 2024, is up 6.5 per cent this year. The firm’s Asia Total Return fund climbed 32 per cent through September, while the China Total Return fund has gained 28.9 per cent. As of December 31, Bridgewater managed $US92 billion ($139.46 billion), a decrease from nearly $US140 billion in early 2023.
