Bridgewater soars 26% to lead pack of biggest hedge funds

Bridgewater soars 26% to lead pack of biggest hedge funds
The firm's flagship macro fund is on pace for its biggest gain in 15 years.
OCT 02, 2025

Bridgewater Associates’ flagship macro fund climbed 26.4% in the first nine months of this year as tariff-fueled market uncertainty boosted the firm and its peers.

The hedge fund is on track for its biggest gain since 2010, according to a person familiar with the matter, who asked not to be identified because the returns aren’t public.

Hedge funds overall have posted strong gains this year, aided by surging US shares and volatility in bond and currency markets spurred by President Donald Trump’s trade wars. The S&P 500 climbed 14% through the third quarter.

The previous decade had been tough for Bridgewater and other macro funds as historically low interest rates calmed the market volatility that typically powers gains for those firms. Bridgewater’s Pure Alpha II macro fund posted annualized returns of less than 3% between 2012 and 2024.

A spokesperson for Bridgewater declined to comment on the recent returns. 

The 50-year-old firm has been in reboot mode since Nir Bar Dea became sole chief executive officer in 2023 and made sweeping personnel changes and cut assets in a bid to boost performance. Westport, Connecticut-based Bridgewater’s billionaire founder, Ray Dalio, has completely exited the firm, selling his remaining stake and stepping off the board earlier this year.

In January, the firm elevated veteran macro trader Ben Melkman, a rare outsider, to the role of deputy chief investment officer.  

Melkman shares that role with firm insiders David Trinh and Blake Cecil.

He was hired last year and was among the first — and most high-profile — managers to join the insular firm from a competitor. While Bridgewater is a systemic macro fund that uses what it calls “timeless and universal” algorithmic rules to determine trades, Melkman’s style has historically been more freewheeling.

After seven years at Brevan Howard Asset Management, where he was a partner, he formed his own hedge fund, Light Sky Macro, in 2017. Melkman closed that firm five years later and joined Schonfeld Strategic Advisors before decamping for Bridgewater less than a year later.

By contrast, the firm’s three co-CIOs have spent most or all of their careers at Bridgewater. Bob Prince was hired in 1986, and Greg Jensen and Karen Karniol-Tambour joined right out of college. Melkman’s co-deputy CIOs also have little or no work experience elsewhere. 

Jensen also runs a fund started in 2024 that uses machine learning and AI to make investment decisions. It’s up 6.5% this year, according to a person familiar with its performance. The firm’s Asia Total Return fund climbed 32% through September, while the China Total Return fund has gained 28.9%. 

Bridgewater managed $92 billion as of Dec. 31, down from almost $140 billion in early 2023. 

Here’s how other hedge funds have fared this year:

Fund Strategy Sept YTD Return 
Bridgewater Pure Alpha II Macro  6    26.4
RV Capital Asia Opportunity Enhanced Macro -0.9 18.7
Arini Macro NA             17
AQR Apex Strategy Multistrategy 4 15.6
Coatue Equities 5.7 14.7
DE Shaw Oculus** Multistrat Macro 3.5 14
Anson Master Fund Multistrat Equity NA 13.7
Marshall Wace MN TOPS Systematic 0.5 13.7
Dymon Multi-Strategy  Multistrategy 1.2 13.1
ExodusPoint Multistrategy 1.9 12.3
DE Shaw Composite** Multistrategy 1.4 11.6
Walleye Multistrategy 0.4 10.5
BlackRock STA Multistrategy 1.3 11.4
Man Strategies 1783 Multistrategy 2.4 10.1
Balyasny Multistrategy 1.3             10
Schonfeld Fundamental Equity Multistrat Equity 1.5 10
Point72 Multistrategy 0.3            9.7
Marshall Wace Eureka Multistrategy 1.3 8
LMR Multistrategy -0.9 7.6
Schonfeld Partners Mulitstrategy 0.5              7
Bridgewater AIA Labs Macro AI/Macro NA            6.5
Citadel  Multistrategy 0.2              5
Winton Multi-Strategy Multistrategy 2.2            2.2

**Through 9/26

 

 

© 2025 Bloomberg L.P.

Latest News

Focus Financial buys entertainment business manager ML Management
Focus Financial buys entertainment business manager ML Management

The RIA aggregator adds a New York and Los Angeles firm serving film and TV talent as it deepens its business management bench

Advisor moves: LPL lands $700M Cambridge team, &Partners adds $728M
Advisor moves: LPL lands $700M Cambridge team, &Partners adds $728M

Meanwhile, Janney picks up a $280 million Merrill Lynch veteran in Scranton as independent and hybrid platforms keep drawing teams

Elevation Point secures Merchant backing as Emigrant Partners exits
Elevation Point secures Merchant backing as Emigrant Partners exits

The breakaway-focused minority investor has staked 15 RIAs since 2024 as private sponsors increasingly trade stakes

CW Advisors adds $1.6B with triple acquisition push into Texas and beyond
CW Advisors adds $1.6B with triple acquisition push into Texas and beyond

Osaic subsidiary continues to forge new routes to US high-net-worth and ultra-high-net-worth people.

Veterans lead civilians on financial confidence, Wells Fargo survey finds
Veterans lead civilians on financial confidence, Wells Fargo survey finds

New data shows veterans report stronger financial security, legacy confidence and career earnings momentum than non-veterans.

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.