Bridgewater is the most famous hedge fund in the world, and its performance has far exceeded the market for a long time. It can be said that if the time dimension is extended, the performance of bridgewater in 10 is very good at present, but there will be problems in bridgewater in 2020 due to special circumstances. At least in the short term, if something goes wrong in bridgewater in 2020, we can't say that bridgewater will fall off the altar. It can only be said that bridgewater's business has some logical problems and burrs, but this is only a short-term problem, so in the long run, bridgewater is still one of the most successful hedge funds.
What are the problems of bridgewater's water transfer fund strategy in 2020? We can see that it has always been a dual coexistence strategy of Alfa Beta. In this strategy, Bridgewater's common operation is to increase leverage for Alpha share, while for the high-risk part of Beta, bridge fund's strategy is actually deleveraging. There is nothing wrong with this logic.
But the problem is that there are too many markets affected by the epidemic in 2020, and the American stock market was blown four times, which is an unprecedented impact for any fund company, and this impact is even more obvious for Bridgewater, because its low-risk part, Alpha part, was actually a mature market at the time of investment, but the mature market in the United States gave a very ugly market performance, which eventually led to Bridgewater's huge losses and even market explosion. This is an important reason why bridgewater has suffered such a big loss.