BOSTON (Reuters) – Hedge fund big Bridgewater Associates’ flagship Pure Alpha Strategy posted a double-digit achieve in 2018 when many different funds misplaced cash after being caught off guard by the late-year market collapse.
The Pure Alpha Strategy, which has been run since 1991, gained 14.6 percent, after charges, an individual acquainted with the numbers stated on Sunday night. Over its lifetime, the technique has returned a mean 12 percent a yr.
Many hedge funds are nonetheless compiling their returns for final yr, however early knowledge from Hedge Fund Research present the typical fund misplaced 6.7 percent.
Bridgewater ranks because the world’s largest hedge fund and oversees $160 billion. It has earned roughly $50 billion for its buyers over its lifetime, in accordance with knowledge from LCH Investments.
For a while, prime Bridgewater executives have been sounding warning bells about progress, expressing concern lengthy earlier than extra buyers started worrying concerning the tempo of central financial institution rate of interest hikes and the power of the financial system that helped set off a pointy market decline in previous months.
Greg Jensen, one in every of Bridgewater’s co-chief funding officers, informed Reuters late final yr: “The biggest theme developing is that you are going to have significantly weaker growth, near-recession-level growth in 2019, based on our measures, and the markets are generally not pricing that in.”
Reporting by Svea Herbst-Bayliss; Editing by Peter Cooney