Bridgewater Associates' Pure Alpha II Fund Falls 6.9% in August

Sep 8 2015 | 1:27pm ET

Bridgewater Associates' Pure Alpha II Fund, the firm's flagship hedge fund, fell 6.9% in August. 

The fund is still up more than 4.1% since January 1, according to Reuters.  

As the world's largest hedge fund, Bridgewater manages $162 billion in total assets. The Pure Alpha fund had roughly $70 billion in assets under management last month and uses an active macroeconomic strategy that invests in stocks, bonds, commodities and currencies.

Bridgewater’s All Weather Fund fell 4.2% in August, despite being billed as a vehicle able to generate positive returns in most economic environments.

The $80 billion long-only fund doesn’t hedge its portfolio. Instead, as a so-called risk-parity vehicle, it protects against market swings by actively allocating across global stocks, bonds and currencies. Such funds typically rebalance portfolio exposure daily based largely on volatility, making the measure an important portfolio management element. 

In August, global stock markets faced increased volatilty due to concerns over China's economic growth and concerns about potential a potential rate hike by the U.S. Federal Reserve. 


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