Huge trade was assembled over months
Ray Dalio's Bridgewater has bet around $1.5 billion that stock markets around the world will fall by March, according to the WSJ.
The report says the shorts will pay off if the S&P 500 or Euro Stoxx 50 decline and is mostly composed of puts that expire in March and are tied to around $100 billion worth of the indexes.
The trade is only a small part of the $150 billion in assets under management at the firm.
It couldn't be determined why Bridgewater made the investment. Several clients said it may simply be a hedge for significant exposure to equity markets the firm has built up. Funds often hedge, or take offsetting positions, against other exposure to protect against losses.
The massive size of the wager has prompted chatter among traders and caused the price of some options to rise.
There has been a notable rise in S&P 500 put options.
It's extremely rate for a Bridgewater trade to leak.
The same report also highlights a big bet against the dollar.
Key Square Capital Management, a $4.5 billion macro hedge fund founded by Scott Bessent, a former investment chief for George Soros, is betting against the dollar in a variety of currencies anticipating Ms. Warren's continued strength, according to people familiar with the matter.
S&P 500 futures are up 10 points today.
