Ray Dalio's Hedge Fund Dumped By Tiny County Fed Up By Fees Sapping Return

  • San Joaquin saw Bridgewater fees cut fund profits in half
  • Pure Alpha gained 4.1% annualized in five years ended November
Hedge Fund Winners and Losers in 2018
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With $2.9 billion in assets, the San Joaquin County pension fund is a small-fry retirement plan. By contrast, Bridgewater Associates is a colossus, the world’s largest hedge fund with $80 billion.

That hasn’t stopped the northern California fund from taking Ray Dalio’s firm to task for disappointing returns and high fees. After reviewing the investment for more than a year, the county decided this month to pull its entire $81 million from Bridgewater’s Pure Alpha II fund. The move came even after it gained 14.6 percent last year.