May 22, 2024

Bridgewater’s Flagship Macro Fund Lost 7.6% Last Year

(Bloomberg) — 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.

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The losses for the world’s biggest hedge fund corresponded to the biggest two-month gain in global bonds since at least 1990 and a roughly 14% gain in US shares.

The Pure Alpha II fund was up 7.5% through October before dropping about 14% in the following two months.

The firm’s long-only All Weather fund returned 10.6% last year, one of the people said.

A Bridgewater spokesperson declined to comment.

This marked the second-straight instance that Bridgewater’s flagship fund gave up gains at year-end. Pure Alpha II tumbled in October and November 2022 after having been up 22%. It ended that year up 9.4%.

Read More: Bridgewater CEO’s Past Office Romance Led to Favoritism Claims

Last year’s market moves produced a wide range of returns for macro managers. Rob Citrone’s Discovery Capital Management made 48%, while Said Haidar’s macro fund fell about 50% through November.

Tekmerion Capital Management, another macro fund, gained 9.8% last year. The firm, run by former Bridgewater employees, won a case against their former employer in 2020, after the hedge fund giant accused them of misappropriating trade secrets, breach of contract and unfair competition.

Here’s a look at 2023 returns for other hedge funds:

(Adds other macro fund performance starting in seventh paragraph. An earlier version corrected Schonfeld fund name in the chart.)

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