Ray Dalio's Macro Hedge Fund Said to Slump 6.9% Last Month

  • Bridgewater's macro hedge fund up 4.1 percent for the year.
  • Firm's $80 billion All Weather fund tumbled 4% during August.

Billionaire Ray Dalio’s macro hedge fund slumped 6.9 percent last month, according to a person with knowledge of the matter, as China’s currency devaluation and commodity market volatility rattled markets.

The loss for the Pure Alpha fund reduced its year-to-date gain to 4.1 percent, said the person, who asked not to be identified because the information is private. The HFRI Macro Index declined 1.2 percent last month and is down 0.7 percent for the year.

Dalio lost money in both of his main funds last month. Bridgewater Associates’ $80 billion All Weather fund, which is designed to produce returns in most economic environments, fell 4 percent in August, a person with knowledge of the matter said last week. Dalio said last month that he expects the U.S. Federal Reserve to resume quantitative easing even if it first raises benchmark rates by a fraction of a percentage point. He said there will be “a big easing before a big tightening.”

Other macro funds, which seek to profit from broad economic trends, fared better in August. Rubicon Fund Management, run by Paul Brewer out of London, posted an 11 percent gain in its global hedge fund, boosting year-to-date returns to 14 percent, according to investors. Andrew Law’s Caxton Associates gained 3.5 percent in its main fund last month through Aug. 24.

Dalio’s Bridgewater is based in Westport, Connecticut, and has about $169 billion in assets, according to its website. Reuters reported the returns earlier.

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