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Bridgewater Associates posted massive gains in 2025, headlining a strong period for global macro as a new year begins.
Its flagship Pure Alpha product rose 33% while All Weather fund rose 20.4% in the year to December 29. The world’s largest hedge fund manager, with almost $100bn, has improved performance this year since deliberately paring back AuM.
Record profits
Bridgewater has now delivered double-digit gains across its main strategies for two straight years and delivered record profits (both in Pure Alpha and in aggregate) for investors in 2025, when it celebrated 50 years in business.
Its Asia-Pacific strategies performed well, making 36.9% in Asia Total Return and 34.2% in China Total Returns (all estimated for the year to 29 December).
Its AIA Macro strategy, part of an in-house AI/ML venture overseen by co-CIO Greg Jensen, has seen a $5bn fundraise and made 11.9%.
Last year saw the final step in its founder transition after Bridgewater repurchased the last remaining ownership shares held by Ray Dalio-related entities. It also expanded its employee ownership program.
‘Vintage’ era for macro
The Connecticut firm is the highest-profile winner during a period widely seen as a return to the heyday of global macro. New York-based PivotalPath, which called it a “vintage” era for macro, recorded the strategy at the top of its “Alpha Leaderboard” in November, producing 10% of Alpha versus the S&P 500 over the last 12 months.
Macro hedge funds have performed well through this year’s market uncertainty, divergent central bank activity and geopolitical swings. Performance was more muted, a 0.4% gain in November for the strategy as macro managers “positioned around the evolving rate cut path rather than any single meeting outcome,” said PivotalPath.
“Many favored expressions in the front end of the curve and in selective steepeners, while pairing those views with optionality in case inflation or political noise disrupted the path.
“EM-FX carry remained in focus where real yields looked compelling but was also frequently wrapped with options or tight stop structures to keep drawdowns tolerable around US data and Fed surprises.”
Reuters first reported the returns. Bridgewater has been contacted for comment.