Business Maverick: Dalio’s Bridgewater Pushes Into Sustainability Investing

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Bridgewater Associates, the world’s biggest hedge fund, is starting a sustainability strategy, the latest money manager to tap into surging demand for socially and environmentally conscious investing.

Ray Dalio’s firm, which oversees $140 billion of assets, plans to open two sustainable funds in 2021. Bridgewater started advising clients this year on how to manage investments to meet both societal and financial goals. The effort is being overseen by senior investment executive Carsten Stendevad, Chief Operating Officer Brian Kreiter and Karen Karniol-Tambour, director of investment research.

Investments that are both socially and financially rewarding are surging in popularity as investors seek to address issues such as income inequality and global warming. Hedge funds including Two Sigma and TCI Fund Management have in the past year started investments that are tied to meeting societal goals.raised the question

One of Bridgewater’s sustainable strategies will be a UCITS fund, which is a mutual fund with hedge fund-like characteristics and is regulated by the European Union. It will be launched in the first quarter and managed by Societe Generale SA’s Lyxor Asset Management, the Paris-based firm said in a statement Wednesday.

Both of Bridgewater’s new funds will be modeled on its All Weather fund, a strategy that accounts for about half of the firm’s assets. The passive pool seeks to make money in most economic environments. That fund returned 5.7% this year through November, a person familiar with the situation said. It has climbed at an annualized rate of 7.7% since its 1996 inception.

 

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