A large fund at Ray Dalio’s Bridgewater Associates is reportedly not doing well.
Reuters reported that Bridgewater’s $70 billion All-Weather Fund, which was believed by many pension funds to survive the volatile market, is down about 6% this month and 8% this year.
A popular investment option among pension funds, the fund is one of two large portfolios managed by Bridgewater that utilizes a “risk-parity” strategy that aims to make money if bonds or stocks sell off. The article added that fund managers said the strategy does not perform well if both stock and bond prices drop, as it has experienced in the last few weeks.
Founded by Dalio in his Manhattan apartment, Connecticut-based Bridgewater Associates is now the world’s largest hedge fund with $144 billion in assets.