Bridgewater Defensive Alpha strategy to generate returns negatively correlated to equities

Bridgewater launched its new "Defensive Alpha" in July last year according to regulatory filings that have only just come to light.

Reuters reporting:

• A source close to Bridgewater said the strategy, which has not been reported previously, is designed to help weather equity bear markets and generate returns negatively correlated to equities Equities Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Read this Term, which means the fund's profits will increase if stocks fall.

More at that link above.

(I guess this is not just put options Options Options represent a contract that enables investors to buy or sell underlying instruments such as security, exchange-traded funds (ETFs) or indices at a certain price over a certain period of time. Buying and selling options can be done on the options market, which trades contracts based on securities. When trading options, the price of the option is thus a percentage of the underlying asset or security.Investors who purchase an option are able to buy shares at a later time and are known as a ca Options represent a contract that enables investors to buy or sell underlying instruments such as security, exchange-traded funds (ETFs) or indices at a certain price over a certain period of time. Buying and selling options can be done on the options market, which trades contracts based on securities. When trading options, the price of the option is thus a percentage of the underlying asset or security.Investors who purchase an option are able to buy shares at a later time and are known as a ca Read this Term, right?)