Ray Dalio’s dire view on Europe is paying off. His Bridgewater Associates, the world’s largest hedge fund, climbed about 14 percent this year through March in one of its strategies, according to a person familiar with the matter. The year-to-date return was fueled by a bet against the euro, said the person, who asked not to be identified because the information is private.
“The lack of aggressive policy action by the ECB and other governing actors has resulted in stagnation and depression across much of the Eurozone,” the $165 billion Westport, Connecticut-based firm wrote in its 2015 strategic report, a copy of which was obtained by Bloomberg News.
A spokeswoman for Bridgewater declined to comment on the returns.
Firms such as Bridgewater that bet on global economic themes have profited in recent months after central banks triggered major swings in currencies, bonds and stocks. The euro dropped 11 percent against the US dollar in the first three months of this year as the European Central Bank prepared to increase stimulus through a bond-buying program and the Federal Reserve signaled it aims to raise interest rates.
Macro hedge funds overall climbed 0.5 percent last month and are up 2.1 percent this year through March, according to Bloomberg data.
