Dalio’s Hedge Fund Risks Being Dumped by Pension on Weak Returns
- Bridgewater manages $175 million for Orange County, California
- The investment has returned 4.5% annualized since 2005
This article is for subscribers only.
A California county’s $21 billion pension is considering whether to drop Ray Dalio’s hedge fund after it underperformed for most of the past 16 years.
The Orange County Employees Retirement System’s investment in Bridgewater Associates’s Pure Alpha fund has returned an annualized 4.5% since 2005, about 2.5 percentage points less than its benchmark, according to a memo seen by Bloomberg from Meketa Investment Group, the pension’s consultant. The strategy has topped OCERS’s target only once in the past five years and has trailed on a seven- and 10-year time horizon.