By Nell Mackenzie and Carolina Mandl
LONDON/NEW YORK (Reuters) – Bridgewater Associates’ flagship fund Pure Alpha posted a acquire of 8.2% in January, in a interval when buyers navigated a sell-off in AI-related shares and uncertainties across the incoming U.S. administration, a supply aware of the matter mentioned.
It was not instantly clear what drove the hedge fund efficiency in January.
Final yr, the macro flagship fund, generally known as Pure Alpha 18% volatility, was up 11.3%.
Tech shares plunged on Jan. 28 after Chinese language AI startup DeepSeek revealed that its mannequin was on a par or higher than industry-leading rivals within the U.S. at a fraction of the fee, sending shares in Nvidia down roughly 17%.
Worldwide, shares additionally whipsawed amid issues after U.S. President Donald Trump mentioned he would implement tariffs on Canada, Mexico and China. On Monday, Trump suspended his risk of tariffs on Mexico and Canada, however maintained tariffs on China.
Nonetheless, regardless of all choppiness in January, all primary U.S. inventory indexes ended the month within the constructive territory. The S&P 500 rose 2.7%, whereas the Nasdaq Composite and the Dow Jones Industrial Common gained 1.64% and 4.7%.
Talking at a convention in Miami final week, co-chief funding officer Karen Karniol-Tambour mentioned buyers ought to diversify their fairness allocations to markets exterior the U.S. and in addition add extra bonds to portfolios as a option to defend towards a progress downturn.
“The bar for the U.S. (equities) to maintain being the outperformer has simply actually risen relative to what it was due to this era of mass outperformance,” she mentioned.
(Reporting by Carolina Mandl in New York; Modifying by Leslie Adler and Marguerita Choy)
