Weekly update

Bridgewater’s chief says he has ‘rewired’ world’s largest hedge fund

Bridgewater Associates, under its new CEO Nir Bar Dea, has undergone significant changes to boost its investment performance and distance itself from founder Ray Dalio. According to reports, Bar Dea likened the transformation to replacing a brain and heart in a human body. With Bridgewater facing challenges like succession planning and declining performance, Bar Dea aims to signal a fresh start for the company. Despite its historical dominance in the hedge fund sector, Bridgewater slipped in performance, losing its top spot to Citadel in 2022. Bar Dea acknowledges past setbacks and is focused on improving staff retention and investment returns. He aims to instil a culture of "absolute truth" while making Bridgewater more agile in volatile markets. The firm is also exploring innovative strategies, including a macro fund utilizing artificial intelligence, which Bar Dea sees as a significant step forward.

Hedge fund PM joins MFO Kamet Capital

Gerald Chua, who previously served as a Partner and Deputy Portfolio Manager at Lauro Asset Management, a Singapore based hedge fund led by David Mercurio, has transitioned to a new role as a Portfolio Manager at Kamet Capital, a multi-family office . During his tenure at Lauro Asset Management, Chua spent six years contributing to the firm's concentrated portfolio, where he emphasised deep fundamental research and active engagement. He initially joined the company as an Investment Analyst in July 2017 and was later promoted to Partner in January 2021.

Balyasny Is Building Physical Natural Gas and Power Business in Europe

Balyasny Asset Management is launching a new unit to trade natural gas and power in Denmark, aiming to boost profits in commodities according to Bloomberg. They're setting up systems and getting registered to trade with key entities. Over the next 18 to 24 months, they plan to expand in this market. To lead this effort, they've hired Kristian Junker as a senior portfolio manager. Balyasny, managing about $21 billion, currently has 14 portfolio managers in commodities.

Physical trading of natural gas and power has been profitable for hedge funds like Balyasny, especially post-events like Russia's invasion of Ukraine. Engaging in physical trading allows firms to leverage arbitrage opportunities and act as a hedge against financial trading risks. In Denmark, Balyasny is tapping into the country's power-trading hub. They've been strengthening their commodities division since four years ago, with Dan Deighton leading since 2022. They're also expanding in Asia, hiring traders and focusing on metals like copper and iron ore. While they trade metals derivatives, they don't engage in physical metals trading.