Strategies of Banks and Other Financial Institutions

Cases on Hedge Funds

8.1 Bridgewater Associates

Bridgewater Associates is a global investment management firm established in 1975. The firm manages approximately $150 billion in global investments for a wide range of institutional clients, which includes foreign governments, central banks, corporate and public pension funds, university endowments, and charitable foundations. Bridgewater is the largest hedge fund manager in the world. Bridgewater Associates is credited with the “All Weather” strategy, which is based on the concept that return on assets is a function of the variables of cash, beta, and alpha. The All Weather strategy is based on the idea that asset classes react in ways based on the relationship of cash flows to the economic environment. ...