Ray Dalio’s Bridgewater is profiled in the New Yorker this week and among the many interesting details revealed within, there’s one reminder.Bridgewater is now managing around $100 billion. That makes his the biggest hedge fund in the world – and despite that size, which is usually seen as a burden, he’s doing better than most.
From the New Yorker:
“Of the roughly one hundred billion dollars invested in Bridgewater, only a small proportion comes from wealthy families. Almost a third comes from public pension funds, such as the Pennsylvania Public School Employees’ Retirement System; another third comes from corporate pension funds, such as those at Kodak and General Motors; a quarter comes from government-run sovereign wealth funds, such as the Government Investment Corporation of Singapore.”
The explosion in Bridgewater’s AUM seems to have happened relatively quickly. In March 2010, he was managing around $43.6 billion, according to Pensions and Investments. And last year in October, he was managing around $51 billion, according to AR Magazine. Then his fund was up 38% in 2011, better than any other large hedge fund and outperforming most small funds too. So then he launched a $10 billion fund this year.
In fact because of his success, it’s now routine for big hedge funds, like Brevan Howard for example, to point to Bridgewater when investors question if growing in size might hurt their returns. Now hedge fund managers say, nope, just look at Bridgewater.
Despite all the weirdness, Bridgewater is one of the best hedge funds out there.