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Bridgewater hedge fund is betting on falling European equity markets

B.ridgewater is obviously pessimistic about the economic outlook for Europe. The hedge fund has launched bets on declining European equities worth at least $ 6.7 billion, data provider Breakout Point said Thursday evening. No other wealth manager speculates as aggressively in this direction. In early 2018 and 2020, Bridgewater also bet heavily on a bear market.

From the asset manager’s mandatory publications, it can be concluded that it has currently “pushed away” shares of 21 European companies, said Breakout Point. In so-called short selling, investors borrow shares to sell them immediately. They’re betting they can stock up on cheaper newspapers by the return date. They pocket the difference as a profit.

According to Breakout Point, insurers Allianz and Axa are among those on the list of shares Bridgewater plans to decrease. In addition there would be banks such as Santander, BBVA, ING or Intesa Sanpaolo. The largest volume would be bets on a setback for the shares of chip supplier ASML, energy group TotalEnergies and pharmaceutical company Sanofy.

According to European regulations, investors must declare whether they make short sales in excess of 0.5% of a company’s total capital. Bridgewater’s actual betting size could be even greater. However, it is unclear to what extent the short sales are hedging transactions for other investments. The hedge fund could not be reached immediately for comment.

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