Chinese hedge fund managers are rushing to launch products inspired by Bridgewater Associates’ popular “All Weather” strategy, aiming to offer investors protection against expected volatility during Donald Trump’s second U.S. presidency. Ray Dalio’s “All Weather” strategy, which helped shield Chinese clients from the brunt of the Sino-U.S. trade war during Trump’s first term, is now in high demand. The strategy, which mitigates volatility across multiple assets, delivered an impressive 37% return last year, outpacing most rival products.
Since Trump’s election victory in November, investor demand for similar strategies has skyrocketed, spurred by fears of renewed trade tariffs. However, Bridgewater has had to limit the sale of its onshore China funds due to overwhelming demand, opening the door for competitors. Over a dozen hedge funds have launched “All Weather”-style products since the election, with major local players like SHQX Asset Management and Shanghai Luoshu Investment Co. also getting in on the action.
Yin Zhengxin, head of marketing at Luoshu, sees the competition as reminiscent of Tesla’s impact on China’s electric vehicle industry. “In the next 3-5 years, local fund managers will excel in the All Weather strategy, potentially challenging Bridgewater’s dominance,” he said. Even global players like Man Group are entering the scene, preparing to offer a similar strategy to mainland investors.