February 22, 2012

Ray Dalio is still negative about 2012. Bridgewater sells $250 million to Texas Fund.

Bridgewater Associates LP, the hedge fund run by Ray Dalio, agreed to sell $250 million share of the company to a Texas Teacher Retirement System. It seems that Ray Dalio wants to lower his exposure in the company and that many institutional investors are looking for ways to diversify by investing in hedge funds. The texas fund move is no wonder, as in 2010 and 2011, Ray Dalio achieved extraordinary returns of his fund by investing in several profitable positions like: Long gold, Long CHF. The stake that was sold was non-voting one.

Ray Dalio is an American businessman and founder of Bridgewater Associates. Bridgewater Associates has since attracted many clients including pension funds and is currently (as of January 2012) the largest hedge fund in the world with nearly $120 billion under management.

Ray Dalio founded Bridgewater Associates in 1975. Now the company manages approximately $122 billion in global investments for a wide range of institutional clients. Since the beginning of 2010, Bridgewater made profits from its investments in developed-market currencies, equities, emerging-market debts and currencies as well as commodities. The fund generated a 44.8% return last year. It also generated a return of 25.3% through August 31, despite the large declines in the stock market. As of 2011, the fund is reported to have lost money in only three of its 20 year existence and had an average annualized return of 18 percent.