Billionaire investor Ray Dalio's flagship hedge fund posted gains of 32% in the first half of 2022 even in a broad market decline

• Bridgewater's flagship Pure Alpha II fund posted a 32% return through the first half of 2022.
• Founded by billionaire investor Ray Dalio, Bridgewater is the world's largest hedge fund.

Billionaire investor Ray Dalio's Bridgewater Associates posted a 32% return on its flagship fund through the first half of 2022, according to Reuters and Bloomberg, citing sources familiar with the fund's performance.

Bridgewater, which has about $150 billion in assets under management, is the world's largest hedge fund.

The performance of Pure Alpha II offers a stark contrast with the broader market. The S&P 500 fell about 20% in the first half of 2022, marking its worst return for the first six months of the year since 1962.

The Federal Reserve's interest rate hikes, aimed at keeping inflation in check, stoked huge volatility, which in turn presented opportunities for outsized returns for anyone on the right side of the market.

Bridgewater's Pure Alpha II fund posted gains in 65% of the markets it traded in, according to Reuters and Bloomberg. It made money in sectors including interest rates, commodities, and developed-market currencies, Bloomberg said.

The Pure Alpha II fund has returned 11.4% on average each year to investors since it was established in 1991, the news agencies reported.

Bridgewater did not respond to Insider's request for comment that was sent outside regular business hours.