Bridgewater Associates’ flagship Pure Alpha fund gained 17% in the first half of 2025, outperforming the broader hedge fund industry amid a volatile macro backdrop, according to a report by Reuters citing an unnamed source familiar with the firm’s performance.

The strong showing comes despite global market turbulence tied to US trade policies. By contrast, the S&P 500 and Nasdaq Composite were up just over 5.5% through June.

Bridgewater’s Asia Total Return fund delivered an even more impressive 18% gain, while the firm’s diversified All Weather fund rose 8% over the same period.

The results mark a continuation of Bridgewater’s turnaround under CEO Nir Bar Dea, who began implementing structural changes in 2023. These included limiting new inflows to Pure Alpha, returning capital to clients, and scaling down AUM to boost agility in identifying global trading opportunities.

The world’s largest hedge fund, founded by Ray Dalio, has also expanded into new territory, launching AI-driven investment strategies and partnering with State Street Global Advisors to roll out an ETF, as it adapts to a shifting investment landscape.

Bridgewater’s co-CIOs Karen Karniol-Tambour, Greg Jensen, and Bob Prince now lead the investment strategy, while Dalio continues to mentor from the sidelines.