Multi-strategy major Bridgewater’s China unit remains positive on domestic equities and gold, even after its flagship onshore fund recorded its steepest monthly loss on record in March, according to a report by Reuters.
The report cites Bridgewater (China) Investment Management as saying in an April investor letter that Chinese assets have shown relative resilience during recent global market turbulence linked to geopolitical tensions, outperforming many international peers. The firm attributed this to China’s strategic energy reserves, subdued inflation environment, and policymakers’ capacity to deploy further support if needed.
While maintaining a positive stance on equities, the firm has shifted to a more neutral position on Chinese government bonds, citing the risk of imported inflation.
Bridgewater China also reiterated a modest overweight to gold. Although prices have faced short-term pressure, the firm highlighted longer-term tailwinds, including concerns around fiat currency stability and rising sovereign debt levels.
Performance-wise, the yuan-denominated All Weather Plus No.3 fund declined 6.4% in March before fees—its largest monthly drop since its 2021 launch—reducing first-quarter gains to 4.2%. The drawdown came amid broader market weakness, with Chinese equities and global stocks both posting losses as energy prices surged.
Despite the setback, the firm noted a rebound in April across its All Weather Plus strategies, reflecting improving market conditions and portfolio resilience.
Bridgewater China reportedly did not comment publicly on the letter’s contents.
