Dalio's Bridgewater big loser in market sell-off: sources | Reuters

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Dalio's Bridgewater big loser in market sell-off: sources
| Reuters

The Bridgewater All Weather Fund is down roughly 6 percent through this month after losing 5 percent in May, the people said.
For the year, the All Weather fund is down 8 percent.
The plunge in the Bridgewater portfolio began soon after concern rose in late May that the Federal Reserve will soon begin pulling back from its easy money policies, which have included monthly purchases of $85 billion of Treasuries and agency mortgage-backed securities.
The All Weather Fund rose 14.7 percent last year, according to a year-end investor note.
The All Weather Fund is what is known in the $2.25 trillion hedge fund community as a risk parity product and is a popular investment option for many pension funds. The theory behind these products is that when stocks fall, bond markets will rally and vice versa.
Risk parity products are designed as a natural hedge for that outcome and they have been marketed by Wall Street banks to institutions like pensions funds in that way.
However, these types of funds, of which Bridgewater's All Weather Fund is one of the biggest, tend to perform poorly when both stock and bond prices tumble as global markets have experienced in recent weeks.