Ray Dalio's Hedge Fund Lost $12.1 Billion in 2020


Ray Dalio's Bridgewater Associates lost $12.1 billion for its investors in 2020.

The famed investor's hedge fund was outperformed by 20 of the top hedge funds in the world that raked in their best returns in decades due to the massive market rally. However, it's important to note that Dalio is still the best-performing hedge fund manager of all time with gains of $46.5 billion annually.

"We have never had a significant downturn, all positive years, but we knew that there would come a day," Dalio said in September. "We missed the pandemic going down, and that is the reality."

According to rankings from LCH Investments, the top 20 hedge fund manager's made $63.5 billion for investors in 2020. "In 2020 the best hedge fund managers generated substantial returns while limiting downside risk, which is exactly what they are meant to do," LCH's chairman, Rick Sopher, said. "2020 was the year of the hedge fund."

The S&P 500 is up about 70 percent since its March low, driven by unprecedented stimulus and massive gains in tech stocks. However, the top 20 hedge funds underperformed the S&P 500 returns by a significant margin.

  • Average return of top 20 hedge funds in 2020: 11.6 percent
  • S&P 500 return: 16 percent

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Economics, Finance and Investing