New York (HedgeCo.net) – Hedge fund management firm Bridgewater released performance results for its two main funds yesterday and both funds moved higher on the month.

The All Weather Fund, which uses the recently criticized risk parity strategy, gained 4.1 percent during the month, but remains down 3.4 percent on a year to date basis through the end of October. Bridgewater’s Pure Alpha II Fund gained 3.3 percent in October and is now sitting on a gain of 7.4 percent year to date. The Pure Alpha fund is a traditional hedge fund that makes directional bets on different asset classes.

The risk parity strategy came under fire back in August when volatility spiked in the equities markets and a few other hedge fund managers suggested that the strategy added to the tumultuous markets. Bridgewater founder Ray Dalio defended the strategy and issued a letter that stated, “All Weather is a strategic asset allocation mix, not an active strategy.”
While the returns of both funds were welcomed, for comparative purposes, the S&P 500 gained 8.3 percent in October and that is the biggest monthly gain for the index in four years.

Rick Pendergraft
Research Analyst
HedgeCoVest