Chinese hedge fund managers are rapidly introducing products modelled after Bridgewater Associates’ renowned “All Weather” strategy to meet surging investor demand for tools to navigate potential volatility anticipated under Donald Trump’s second US presidency, according to a report by Reuters.
The “All Weather” approach, designed by Bridgewater founder Ray Dalio, is a multi-asset, risk-balanced strategy that gained traction in China during Trump’s first term, providing resilience against the economic shocks of the Sino-US trade war. Last year, Bridgewater’s onshore China strategy achieved an impressive 37% return, outpacing most local hedge fund products.
Following Trump’s November election win and renewed threats of higher tariffs on Chinese goods, investor interest in the “All Weather” strategy has skyrocketed. Bridgewater has seen billions of yuan flow into its onshore funds, leading the firm to restrict new investments. This gap in supply has catalysed a wave of rival product launches, with at least a dozen hedge funds adopting the “All Weather” branding since November, according to registration data.
Prominent Chinese asset managers, including SHQX Asset Management and Shanghai Luoshu Investment Co, are among those racing to capitalise on the trend. Yin Zhengxin, head of marketing at Luoshu, likened the competitive landscape to how Tesla’s entry spurred innovation in China’s electric vehicle market. “Local fund managers will likely master the All Weather strategy within the next three to five years, challenging Bridgewater’s dominance,” Yin said.
The allure of the “All Weather” strategy has also attracted global hedge fund giant Man Group. According to sources, the firm’s China unit is preparing to launch its AHL TargetRisk strategy, which shares the risk-parity principles underpinning Bridgewater’s approach. Both Bridgewater and Man Group declined to comment.
Bridgewater launched its “All Weather” product in China in 2018, and it has consistently delivered positive annual returns, even amid a struggling Chinese economy. The strategy proved its robustness during the trade war, the Covid pandemic, and the 2024 “quant quake” that rattled many hedge funds.
As of early 2024, Bridgewater China managed approximately CNY40bn in assets, a figure believed to have grown significantly over the past year.
Domestic players have swiftly moved to emulate Bridgewater’s success. SHQX Asset’s president, Lv Chengtao, noted strong inflows into its newly launched “All Weather” products in late 2024, reflecting the strategy’s growing appeal. Other firms, such as Shanghai Quantinv Asset Management, Jroyal Asset, Rongsheng Fund, and Shanghai Lanyin Capital Management, have also introduced similar offerings.
The renewed interest in risk-balanced strategies underscores Chinese investors’ concerns about heightened volatility under Trump’s administration. Carlos Casanova, Asia senior economist at UBP, described the trend as a “huge flight to safety,” driven by fears of escalating geopolitical tensions.
