The world’s largest hedge fund shortens European equities to 66 billion

The world’s largest hedge fund Bridgewater Associates looked grimly at the European economy and shortened European shares to a total value of 6.7 billion dollars, about 66 billion Norwegian kroner at today’s exchange rates. This is a Breakout Point data group that has collected information about hedge fund positions, writes Financial time.

Bridgewater manages USD 151 billion, which is equivalent to NOK 1,493 billion at current exchange rates, and is thus the largest hedge fund in the world.

On the short list on Thursday were 21 European stocks, in total from the financial to energy sectors. Some of the biggest short positions are:

  • 9.9 billion Dutch semiconductor equipment supplier ASML Holding
  • 6.982 million in French energy company TotalEnergies
  • 6.395 million at the French pharmaceutical factory Sanofi

Other companies on the list include BNP Paribas, Vinci, Schneider Electric and Air Liquide in France, Bayer, Munchener Re, Allianz, Vonovia, Infineon, Deutsche Börse and BASF in Germany, Iberdrola, Banco Bilbao and Banco Santander in Spain, ASML and ING in Spain. Netherlands and Intesa Sanpaolo in Italy.

“For a short sale measure, we can’t recall any other manager who came close to this, other than Bridgewater himself,” said Breakout Point. Bridgewater had similar short sales in the first quarters of 2018 and 2020.

Bridgewater’s short sell was announced the same week as central banks in Europe and the US raised interest rates to combat rising inflation.

If Bridgewater is successful, the short sale will contribute to an already successful 2022 for the hedge fund, which so far this year has achieved a 26.2 percent gain in the Pure Alpha fund.

Lance Heptinstall

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