WSJ reported that Bridgewater Associates is almost finished launching a $10 Billion fund. This is the biggest hedge fund launch ever. The new fund already returned 11% this year, same as Dalio’s Pure Alpha fund. Ray Dalio was one of the most successful hedge fund managers last year. He returned 45% in 2010.
Bridgewater was already the world’s largest hedge fund before this launch. Now they manage $100 Billion. Jack Meyer’s Convexity Capital topped the list of biggest hedge fund launches since 2006. WSJ prepared a graph showing the top 6 hedge fund launches. Insider Monkey currently follows Eric Mindich’s Eton Park and Cantillon Capital Management’s portfolio activities.
Ray Dalio is bullish about US equities but he’s more bullish about emerging market equities and bonds. “Portfolios have too much concentration in developed countries’ stocks and bonds relative to other assets,” said Dalio. “The key thing is going to be diversification. Most investors have too much dollar denominated assets or too much of their portfolio in developed countries. I don’t think that they have typically much gold in their portfolio. Gold is a form of money…The main theme now for investors is that if they diversify their assets into other assets, I think other assets will perform better. It will also lower the risk of their portfolio.” (Read the details about Ray Dalio’s bullish expectations here)