US Markets

Bridgewater Associates bets over $1 bln on market drop - WSJ

Credit: REUTERS/BRENDAN MCDERMID

Bridgewater Associates LP, a hedge fund founded by billionaire Ray Dalio, has bet more than $1 billion that stock markets around the world will fall by March, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Nov 22 (Reuters) - Bridgewater Associates LP, a hedge fund founded by billionaire Ray Dalio, has bet more than $1 billion that stock markets around the world will fall by March, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The bet, assembled over a span of months and executed by a handful of Wall Street firms, including Goldman Sachs Group Inc GS.N and Morgan Stanley MS.N, would pay off for the world's biggest hedge fund if either the S&P 500 .SPX or the Euro Stoxx 50 .STOXX50E — or both — declines, the report said. (https://on.wsj.com/2pGbT53)

The bet is made up of put options, contracts that give investors the right to sell stocks at a specific price by a certain date. The options expire in March and currently represent one of the largest bearish bets against the market, the report added.

Bridgewater Associates was not immediately available for comment.

(Reporting by Bharath Manjesh in Bengaluru; Editing by Shinjini Ganguli)

((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 8400;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More