The World's Largest Hedge Fund Had a Huge Quarter Betting Against the Euro

Ray Dalio’s Dire View on Europe Pays Off

Ray Dalio’s dire view on Europe is paying off.

His Bridgewater Associates, the world’s largest hedge fund, climbed about 14 percent this year through March in one of its strategies, according to a person familiar with the matter. The year-to-date return was fueled by a bet against the euro, said the person, who asked not to be identified because the information is private.

“The lack of aggressive policy action by the ECB and other governing actors has resulted in stagnation and depression across much of the Eurozone,” the $165 billion Westport, Connecticut-based firm wrote in its 2015 strategic report, a copy of which was obtained by Bloomberg News.

A spokeswoman for Bridgewater declined to comment on the returns.

Firms such as Bridgewater that bet on global economic themes have profited in recent months after central banks triggered major swings in currencies, bonds and stocks. The euro dropped 11 percent against the U.S. dollar in the first three months of this year as the European Central Bank prepared to increase stimulus through a bond-buying program and the Federal Reserve signaled it aims to raise interest rates.

Macro hedge funds overall climbed 0.5 percent last month and are up 2.1 percent this year through March, according to Bloomberg data.

Multistrategy Managers

A broader index representing funds across strategies advanced 1.8 percent in March and is up 2 percent this year, according to the Bloomberg Global Aggregate Hedge Fund Index. A multistrategy cohort rose 0.5 percent last month and 2.1 percent in 2015.

Eton Park Capital Management, the $9 billion New York-based hedge fund run by Eric Mindich, increased 2.2 percent in March and 7.1 percent this year, according to a person familiar with the matter, who asked not to be identified because the information is private.

Another multistrategy firm, $6.5 billion New York-based Visium Asset Management, run by Jacob Gottlieb, climbed 2.1 percent in its main fund in March, bringing yearly returns to 5 percent, the person said.

A spokesman for the firms declined to comment.