Even the world's biggest hedge fund was caught flat-footed by the coronavirus market sell-off

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The Financial Times reported Bridgewater's flagship fund is down about 20% for the year following the swift plummet from all-time highs into a bear market from stocks.

, has navigated several market downturns with great success. The recent coronavirus-induced sell-off is not one of them, however.reported Bridgewater's flagship fund — the Pure Alpha Fund II — is down about 20% for the year following the swift plummet from all-time highs into a bear market from stocks. For March, the fund was down about 13% through Thursday's close, according to the report. Overall, Bridgewater manages more than $160 billion in assets.

"We did not know how to navigate the virus and chose not to because we didn't think we had an edge in trading it. So, we stayed in our positions and in retrospect we should have cut all risk," Dalio told the Financial Times in a statement. Bridgewater's massive losses come after Dalio told CNBC in late January investors should take cash out of their portfolio, noting: "He also said "everybody is missing out." Dalio added, however, investors should have some balance in their portfolio and advised investors buy gold as a hedge."

Equities have tumbled more than 20% since reaching their record highs just last month, officially ending the longest bull run in history and kicking off a bear market.

 

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Of course. No one can predict the AI algorithms that do all the trading today.

That just doesn't make sense. If that is the case, then that hedge fund doesn't understand basic technical analysis. It's been evident for months that the market was hyper-inflated and due for a massive correction.

I know more about the current market than this guy.

“Cash is trash”Overconfidence at the market top...happens every time!!!

Principles is not working?

We all should’ve seen it coming. Expect nothing less from the unhinged American media leading up to an election.

Hedge funds suck!!!

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