One east coast pension fund is adjusting its bet on Ray Dalio’s Bridgewater Associates. Leaders of the Public School Employees’ Retirement System of the Commonwealth of Pennsylvania (PSERS) have recommended the entity shift $600 million – one-third of its $1.8 billion fund – from its existing All Weather allocation to the Bridgewater Optimal Portfolio.
The Bridgewater Optimal Portfolio combines the beta derived from the All Weather fund with tailored value-adding and risk-reducing alpha. It unites Bridgewater’s optimal strategic asset allocation with a diversified portfolio of longer-term alphas that are primarily a combination of short outright and market neutral positions.
The goal is to provide downside protection during period of market stress and reduce risk related, for example, to a decline...
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