CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Bridgewater misses the mark, but how do other funds fair?
Pure Alpha, Bridgewater Associates’s flagship fund, fell 4.9% in the first half of 2019 after being caught off-guard by a rebound in bonds and equities.
The drop of nearly 5% in the first six months of the year is one of the worst performances for investment legend Ray Dalio’s $150bn hedge fund in the past 20 years, the Financial Times reported. The drop follows a strong 2018 performance and, while Bridgewater did not comment on the loss, it is thought the fund approached 2019 expecting more turbulence and were surprised by a market recovery.
By comparison, the average macro hedge fund gained 5.2 per cent in the same period, while the FTSE All-World equity index rose 15% in the six months to June.
While Bridgewater’s fund has suffered a drop this year, it has suffered similar losses in the first half before and managed to turn things around by the end of the year.
But what about other top fund managers? Did they anticipate the rebound that caught Dalio offguard? Our Guru Blends are carefully-assembled baskets of shares that mirror the portfolios of top investors in a single CFD – take a look below to see how they fared in the first six months of 2019.
Warren Buffett is one of the most successful fund managers and is widely known as the Oracle of Omaha. He is the CEO of Berkshire Hathaway and, despite being considered technology adverse, his largest position is in Apple. He is known for his methodical, value-based style of investing.
Buffett favours quality businesses that have good valuations and potential for large growth.
In the six months to June 2019, the performance of our Warren Buffett Blend was up 51.77%, with particularly good performances in February and March this year.
An activist investor, Ackman’s style is very different to Buffett’s. He prefers to own large holdings in a small number of companies in order to get enough leverage to push through changes within the business. Through these changes, he seeks to release value for shareholders.
His largest holdings are in Restaurant Brands International, Lowe’s and Chipotle.
In the six months to June 2019 our Ackman Blend – which mirrors his portfolio – has had a staggering performance. It is up 95.89%, having had a particularly good February and March.
Like Ackman, Icahn is an activist investor. He has said in the past that: “My investment philosophy, generally, with exceptions, is to buy something when no one wants it.”
More particularly, as a contrarian investor, he buys unpopular stocks and then uses his position as a major shareholder to force through changes that deliver more value, often replacing the whole board of directors.
His fund has large positions in CVR Energy, Herbalife Nutrition and Cheniere Energy.
This year to date, the Icahn Blend is up 21.12% and has managed to overcome poor performances in February, March and May.
Known as a maverick hedge fund manager, Soros is a short-term speculator. An investment of $1000 with him in 1969 would be worth over $4 million today.
Soros makes large one-way bets on the movements of currency, commodities, bonds and derivatives, speculating on whether they will rise or fall. He is widely remembered as the man who broke the Bank of England, in what became known as Black Wednesday.
In the six months to June 2019, our Soros Blend is up 31.99%. This is a new Blend for MARKETS.COM but it mirrors Soros’ existing portfolio.
Brad Gerstner is the founder and CEO of Altimeter Capital Management, a hedge fund that focuses on technology firms.
His portfolio is dominated by United Continental and Facebook, but also features other big names like Microsoft, Salesforce.com and Alibaba.
In the six months to June 2019, our Gerstner Blend was up 1.33%. The Blend is recovering from big drops in February and March but bounced back in June.
A long-short investor, David Einhorn’s strategy is to take long positions on stock that is expected to appreciate and short positions on stock expected to decline. The fund bases these positions on whether an asset is over or undervalued. Such is his influence, that the Einhorn Effect is a term used to describe a sharp fall in an asset that occurs after he publicly shorts it. The fund has large stakes in General Motors, Brighthouse Financial and Green Brick Partners.
In the first six months of the year, our Einhorn Blend dropped 26.31%. As with other Blends, it saw significant drops in February and March.
Markets.com is the state-of-the-art trading platform provided by Markets.com. As part of Finalto (Australia) Pty Ltd, a constituent of Playtech, a FTSE 250 listed company, at Markets.com we have deep knowledge of the financial markets and an incredible range of resources to continually raise the bar in the world of financial trading.
The domain au.markets.com is solely and exclusively operated by Finalto (Australia) Pty Ltd which is an Australian based company (ACN 158 641 064) regulated by the Australian Securities and Investments Commission (“ASIC”) under license no.424008. FinaltoAU is located at Level 29, 85 Castlereagh St, Sydney NSW 2000 Australia.
Risk Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. Any advice provided on this website is general advice only, and has been prepared without taking your individual objectives, financial situation or needs into account. Before deciding to trade Forex/CFDs offered by MARKETS.COM, you should carefully consider your objectives, financial situation, needs and level of experience, and consider seeking independent professional advice. By trading, you may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please view all our legal documentation here: Regulation and Legal Pack.
Jurisdictional Warning: FinaltoAU AFSL authorizes us to provide financial services to people in Australia. However, FinaltoAU complies with the obligations arising from our AFSL in respect of the financial services provided to all of our clients
FinaltoAU is owned by Finalto (IOM) Limited and is a subsidiary of Playtech PLC, a company traded on the London Stock Exchange’s Main Market and a constituent of the FTSE 250 index.
Markets.com, operated by Finalto (Australia) Pty Ltd Holds Australian Financial Services Licence no. 424008 and is regulated in the provision of financial services by the Australian Securities and Investments Commission (“ASIC”).
Selecting one of these regulators will display the corresponding information across the entire website. If you would like to display information for a different regulator, please select it. For more information click here.
**Terms & conditions apply. Click here to read full policy.
Marketsi An individual approach to investing.
Whether you’re investing for the long-term, medium-term or even short-term, Marketsi puts you in
control. You can take a traditional approach or be creative with our innovative Investment Strategy Builder tool,
our industry-leading platform and personalised, VIP service will help you make the most of the global markets
without the need for intermediaries.
Tracking cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
We’ve noticed you’re on the site. As you are connecting from a location in the you should therefore consider re-entering , which is subject to the product intervention measures. Whilst you’re free to browse here on your own exclusive initiative, viewing the site for your country will display the corresponding regulatory information and relevant protections of the company you choose. Would you like to be redirected to ?