Behind Bridgewater's Surge - Institutional Investor

Behind Bridgewater’s Surge | Institutional Investor 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
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 Stephen Taub 
 
 
 
 
 
 Behind Bridgewater’s Surge
 
 
 A series of management and other changes have driven the hedge fund giant’s flagship fund to its best year in 15 years.
 
 

 
 Stephen Taub 
 
 
 January 8, 2026 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Bridgewater Associates just posted the biggest gain in its flagship strategy since 2010 and one of the best results in its 50-year history.

 Pure Alpha 18 Percent gained 34 percent in 2025, according to someone who has seen the results. It has compounded at 11 percent over the past three years and 10 percent over the past five years.

 The hedge fund giant’s other funds also enjoyed strong results last year: All Weather 10 rose 20 percent, Asia Total Return 15 (USD) jumped 37 percent, AIA Labs 15 grew 11 percent, and China Total Return (USD) Strategy gained 34 percent.

 

 
 
 
 Entering 2026, the firm is confident it is well positioned.

 “The markets are entering a period of easing monetary policy and transformation of technology,” Greg Jensen, co-chief investment officer at Bridgewater Associates and a director on Bridgewater’s operating board of directors, told Institutional Investor in a recent phone interview.

 “Looking ahead to 2026, the firm sees a risky environment for many investors,” said Jensen, who is also the managing CIO for Alpha Engine — which is responsible for the firm’s Pure Alpha strategy — and for AIA Labs. “The combination of easier monetary policy next year against the backdrop of transformational technology creates fertile ground for a potential bubble. Bubbles are hard to navigate and create risks for many investors, as there can be many major drawdowns even as markets rally to new highs. But in this risky environment, Bridgewater also sees opportunities as it has been focused on building a leading understanding of the AI capex boom and how it is affecting economies and financial markets.”

 

 
 
 
 
 
 
 
 
 
 
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 March 9, 2026 
 
 
 
 
 Bridgewater has made a number of management and process changes over the past five years.

 

 
 
 
 These started in 2020 when founder Ray Dalio moved out of the investment decision-making role and an investment committee was created. In 2022, Nir Bar Dea and Mark Bertolini were named co-chief executive officers. Bar Dea then led a major restructuring in 2023. At that time, Bertolini stepped down as co-CEO and became an independent director. Today Bar Dea leads the firm with co-CIOs Greg Jensen, Bob Prince, and Karen Karniol-Tambour.

 That same year, the firm created AIA Labs, described as a dedi

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