Bridgewater Part III Coming Soon


Earlier this year, Ray Dalio got a little sidetracked by his dream headquarters, a magical forest on the beautiful Stamford waterfront where employees would be free to pursue radical truth and its concomitant profits, once they’d settled in and passed the test, anyway. Alas, that slice of Eden will not see the light of day. But the firm’s third hedge fund, two years in the making, will.

According to a Securities and Exchange Commission filing filed December 11, Bridgewater Associates is filing for a notice of exempt offering of securities, namely the Bridgewater Optimal Portfolio, LLC….

The new “Optimal Portfolio strategy” is targeting an 8.5 percent return with a volatility level of 10 percent. “We started to look closely at the interconnected systems,” Robert Prince, Bridgewater’s co-chief investment officer, said in an interview with P&I. Prince is listed on the SEC documents along with Ray Dalio and Greg Jenson as executive officers and members of the managing partnership. “We have never designed our alpha strategy to specifically relate to the beta strategy before,” Prince said, but by doing so “profitable shorts on some of the long beta positions can add a measurable return.”

Bridgewater Files With SEC For Bridgewater Optimal Portfolio [ValueWalk]