Bridgewater Associates to Launch New Fund via Its China Subsidiary

American investment management firm, Bridgewater Associates is reportedly set to float a new Fund in China through its subsidiary dubbed Bridgewater China Investment Management Co., Ltd. As reported by China’s Securities Times, the new fund aims to pull a minimum of 3 billion yuan ($468.8 million) from investors.

Founded by billionaire investor, Ray Dalio, Bridgewater Associates is currently the largest Hedge Fund in the world with over $223 billion in Assets Under Management (AUM) per a filing lodged with the United States Securities and Exchange Commission (SEC) back in July. According to the filing, more than half of the AUM, or 59% is owned by investors outside of the US, showcasing the firm’s high affinity for foreign-based investors.

Bridgewater Associates has extensive reach in many markets including Asia. The company ventured into the Chinese markets through the Bridgewater China affiliate back in 2018, where it floated the first investment fund for clients in mainland China.

The firm is deepening its grip on Chinese markets riding on Ray Dalio’s influence in the country. The billionaire investor has always been optimistic about Chinese markets, and in the heat of Beijing’s crackdown on home-based tech stocks, he recommended that global investors hold both American and Chinese stock to have a robust portfolio. The potential fund is undoubtedly one of the firm’s latest approaches to commit investors’ funds into growth assets in China.

Basic Details of the Bridgewater China Fund

While not much is known at this time per the Bridgewater China’s Fund, China Securities Times said subscription into the new investment fund starts out at 2 million yuan, with a lockup period of 1 year. Subsequent subscription is notably placed at 1 million yuan and investors cannot redeem their holdings within the lockup period.

Per the local media’s reports, the fund is reserved for high networth individuals, and it will be sold through third-party brokers including CITIC Securities, Ping An Bank, and Haomai Fortune as early as this week. The fund is termed a hybrid investment product with the potential for long-term returns.

“The newly issued product of Bridgewater China is a multi-asset hybrid fund. The investment strategy adopts an all-weather enhanced strategy. The investment targets are Chinese stocks, bonds, commodities, and their derivatives; the goal is to achieve a high degree of diversification. Obtain sustained and steady income. Expect long-term returns similar to stocks, but with significantly reduced risks,” the China Securities Times report reads, based on a Google translated version.

The Bridgewater Fund is expected to deploy its global experience in managing assets for investors to channel the new product onto profitability for all of its subscribers.