Bridgewater Associates, one of the world’s largest hedge funds, saw its assets under management (AUM) decline by 18.1% in 2024, falling to $92.1bn, according to a recent regulatory filing, as the firm deliberately reduced the size of its flagship fund, according to a report by Reuters.
The reduction came amid strong, double-digit performance at the Pure Alpha Fund.
Bridgewater, which managed $150bn in 2021, has been actively downsizing its AUM to enhance investment agility. Under CEO Nir Bar Dea’s leadership, the firm has been returning capital to clients and limiting new inflows to Pure Alpha. The fund was deliberately cut to $61bn, aligning with Bridgewater’s internal target of $50bn to $60 bn.
A source close to the firm emphasised that Bridgewater’s goal is to be the best, not the biggest. The firm is expanding into Asia-focused strategies and AI-driven investment products, diversifying beyond its traditional macroeconomic trading approach.
Despite the declining AUM, Bridgewater’s flagship Pure Alpha 18% volatility fund returned 11.3% in 2024, outperforming the broader hedge fund industry. In 2025, the fund has gained 8.7% through 28 March, capitalising on market volatility driven by US trade policy shifts.
However, some investors have opted to redeem funds, citing Bridgewater’s historically uneven performance. While Pure Alpha outperformed in 2024, it lagged behind its peers in both 2022 and 2023. The firm’s global macro strategy – trading equities, bonds, currencies, and commodities – has seen mixed results, though it has recently rebounded.
