Bridgewater Associates is a leading investment management firm focused on delivering unparalleled insights and partnership for the most sophisticated global institutional investors. It is a pioneer in risk budgeting and the separation of alpha and beta for a wide range of institutional clients, including pension funds, foreign governments and central banks, university endowments, and charitable foundations.
Bridgewater’s business model is to bet on a series of probability games utilizing its intellectual capital and win these bets at higher probability than its competitors do. Bridgewater aims to outperform the market by collectively accumulating past investment knowledge and making well-reasoned decisions together with a number of smart employees. By doing so, Bridgewater tries to outperform its competitors, who tend to rely on knowledge and decision-making analyses of only a few analysts.
Unlike many other investment funds where each investment manager makes his own decision, Bridgewater makes investment decisions collectively as an entire organization. Moreover, the employee compensations are largely based on the performance of the firm performance and not on individual performance metrics, unlike many other hedge funds that compensate on individual performance basis.
Assets under management: $154 billion ( as of December 31, 2020)