Ray Dalio’s Bridgewater has just proven that bigger is better.
In a terrible year for hedge funds — where record high numbers of firms shuttered their doors and the Eurekahedge Hedge Fund Index reported the second-worst year ever in the index’s history — Bridgewater, arguably the largest fund in the world with over $77 billion in assets under management, saw returns of 23%, according to DealBook.
Now, we know the trades and strategies that got the firm there. In 2011, Bridgewater placed bets on U.S. Treasuries, German bonds and the Japanese yen, DealBook reported — citing sources familiar with the fund’s strategy.
The sources also revealed bits of the firm’s strategy for 2012 — Bridgewater is bullish on gold as a hedge against inflation, and is also betting against several emerging markets currencies and the Australian dollar.