Bridgewater Associates, the world's largest hedge fund, reported a 9.9% return for its flagship Pure Alpha fund in the first quarter, despite a reported 18.1% decrease in managed assets last year. This performance outpaced the industry, with the fund gaining 11.3% in 2024. The asset decline was largely due to the firm's strategy to return billions to clients, aiming for a leaner fund size to better explore trading opportunities.
CEO Nir Bar Dea initiated comprehensive reforms in 2023, including limiting new inflows into Pure Alpha and returning assets to clients. By January 2024, the fund managed $72 billion, with a target of $61 billion by year-end. The focus is on being the best rather than the largest, with growth in funds concentrating on Asia and AI.
Despite recent successes, some investors have redeemed funds due to inconsistent performance in 2022 and 2023. Founded by Ray Dalio (Trades, Portfolio), Bridgewater has undergone significant changes, including launching an AI-focused fund and collaborating with State Street Global Advisors on an ETF. The company also opened a New York office to support its investment professionals.
