Ray Dalio’s Pure Alpha reportedly had bearish stance going into recent market pullback

Pure Alpha, the flagship fund at Ray Dalio’s Bridgewater Associates, reportedly had an overall bearish viewpoint on U.S. equities in late July, just as the S&P 500 (SP500) index neared its recent 4,607 high point.

According to Reuters, which cited a presentation to investors, Bridgewater Associates, with its $125B in assets under management, made its bearish call just as the benchmark index was approaching trading highs it has not seen since March of 2022.

Reuters noted that the presentation showed bearish positioning in 15 of the 28 assets analyzed. This list included U.S. stocks and Treasuries. The analysis showed a neutral stance in five categories, including equities in the euro-zone and emerging markets, as well as energy.

Since the S&P (500) peaked at 4,607, it has slid 3.8%, dropping to 4,430. As a result, investment vehicles like the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), iShares Core S&P 500 ETF (NYSEARCA:IVV) and the Vanguard S&P 500 ETF (NYSEARCA:VOO) have also retreated.

While the broader benchmark stock index tumbled, U.S. Treasury yields climbed as the U.S. 2-Year Treasury yield (US2Y) recently touched 5.00% and the U.S. 10-Year Treasury yield (US10Y) tagged highs that have not been seen since October of 2022.