Bridgewater

BRIDGEWATERASSOCIATES,LP
FormADVPart2A
UniformApplicationforInvestmentAdviserRegistration
March31,2011
This brochure provides information about the qualifications and practices of Bridgewater Associates, LP
(Bridgewater), an investment adviser registered with the United States Securities and Exchange
Commission(SEC).RegistrationwiththeSECdoesnotimplythatBridgewateroritsemployeespossessa
certainlevelofskillortraining.Theinformationinthisbrochurehasnotbeenapprovedorverifiedbythe
SEC or by any states securities authority. Please contact Bridgewater if you have any questions about the
contentsofthisbrochure.
AdditionalinformationaboutBridgewaterisalsoavailableontheSECswebsiteatwww.adviserinfo.sec.gov.
BridgewaterAssociates,LP
OneGlendinningPlace
Westport,CT06880
Phone:(203)2263030
www.bwater.com
SECFileNumber:80135875
Email:compliance@bwater.com
Item2:MaterialChanges.
OnJuly28,2010,theSECpublishedAmendmentstoFormADV,whichamendstheformatandcontentof
thedisclosuredocumentthattheSECrequiresBridgewatertoprovidetoitsclientsandprospectiveclients.
This brochure dated March 31, 2011 (the Brochure), has been prepared according to the SECs new
requirements and rules. As such, this Brochure is materially different in structure from its previous
disclosure document and contains certain new information that its previous disclosure document did not
provide.
Inthefuture,thisItemwilldiscussonlyspecificmaterialchangesthataremadetotheBrochure.Bridgewater
willalsoreferencethedateofitslastannualupdateofitsBrochure.
Inthepast,Bridgewaterofferedordeliveredinformationaboutitsqualificationsandbusinesspracticestoits
clientsandfundinvestorsonatleastanannualbasis.PursuanttonewSECRules,Bridgewaterwillensure
thatyoureceiveasummaryofanymaterialchangestothisandsubsequentBrochureswithin120daysofthe
close of its business fiscal year. Bridgewater may further provide other ongoing disclosure information
aboutmaterialchangesasnecessary.
Currently, the Bridgewater Brochure may be requested by contacting Helene Glotzer, Chief Compliance
Officer,at2032263030orcompliance@bwater.com.
Part2AofFormADV:UniformApplicationforInvestmentAdviserRegistration
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Item3:TableofContents.
Page
Item1:CoverPage..................................................................................................................................................................................[1]
Item2:MaterialChanges.....................................................................................................................................................................[2]
Item3:TableofContents.....................................................................................................................................................................[3]
Item4:AdvisoryBusiness...................................................................................................................................................................[4]
Item5:FeesandCompensation........................................................................................................................................................[5]
Item6:PerformanceBasedFeesandSideBySideManagement.....................................................................................[6]
Item7:TypesofClients........................................................................................................................................................................[7]
Item8:MethodsofAnalysis,InvestmentStrategiesandRiskofLoss.............................................................................[8]
Item9:DisciplinaryInformation......................................................................................................................................................[23]
Item10:OtherFinancialIndustryActivitiesandAffiliations..............................................................................................[24]
Item11:CodeofEthics,ParticipationorInterestinClientTransactionsandPersonalTrading........................[25]
Item12:BrokeragePractices.............................................................................................................................................................[27]
Item13:ReviewofAccounts..............................................................................................................................................................[30]
Item14:ClientReferralsandOtherCompensation.................................................................................................................[31]
Item15:Custody......................................................................................................................................................................................[32]
Item16:InvestmentDiscretion........................................................................................................................................................[33]
Item17:VotingClientSecurities......................................................................................................................................................[34]
Item18:FinancialInformation.........................................................................................................................................................[35]
Item19:RequirementsforStateRegisteredAdvisers...........................................................................................................[36]
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Item4:AdvisoryBusiness.
Bridgewater provides discretionary investment management services to pooled investment vehicles

(funds)andmanagedaccountclients(collectively,Clients),bothofwhichinclude,butarenotlimitedto,
corporate and public pension funds, sovereign wealth funds, endowments, foundations, family offices, and
fundoffunds.
Bridgewaterbeganinvestmentoperationsin1975,providingmoneymanagementandconsultingservicesin
the global credit and currency markets. Initially, these services were provided to corporations in the
managementofincomeandbalancesheetexposures.Today,institutionalportfoliomanagementisitsfocus.
Bridgewater structures portfolios to pursue consistent and uncorrelated returns. In contrast to the
traditionalapproach,Bridgewaterbelievesthatbuildingportfoliosbasedonriskallocationsismoreeffective
than using capital allocations; and that investors should consider their strategic asset allocation (beta)
separate from tactical moves (alpha). Bridgewater believes investors can dramatically improve their
portfolio'soverallresultsbyseparatelycreatingawelldiversifiedbetaportfoliothatisfreeofenvironmental
biasesandcalibratedtoone'stargetedreturns,andbycreatingawelldiversifiedalphaportfoliothatisfree
ofsystematicbiases(andalsocalibratedtoone'stargetedreturns).
Bridgewater applies this approach to investing across the portfolios it manages. It offers clients an active
managementstrategy(PureAlpha),aconstrainedactivemanagementstrategythatinvestsinasubsetofthe
markets in which Pure Alpha invests (Pure Alpha Major Markets), and an asset allocation strategy (All
Weather).
As of December 31, 2010, Bridgewater manages Client assets on a discretionary basis in the amount of
approximately$90billion.BridgewaterdoesnotmanageClientassetsonanondiscretionarybasis.
Bridgewaters parent company, Bridgewater Associates Holdings, Inc. (Holdings) is owned entirely by
current and former employees or trusts established by them. For additional detail regarding ownership
percentages, please see Bridgewaters Form ADV Part 1A, which is available on the SECs website at
http://www.sec.gov.
With the exception of a nominal preferred interest, Holdings owns 100% of Bridgewater Associates
IntermediateHoldings,LP,aDelawarelimitedpartnership(IntermediateHoldings).
Intermediate Holdings is a general partner and the only limited partner of Bridgewater. Intermediate
HoldingsisalsothesolememberofGlendinningAssociates,LLC,Bridgewatersothergeneralpartner.
Holdings, Intermediate Holdings and Glendinning Associates, LLC are Delaware entities.
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Item5:FeesandCompensation.
ThefeestructuresbelowareBridgewatersstandardfees.Feesarenegotiable,andindividualarrangements
are based on client specific factors, including, but not limited to, assets under management and the
risk/return parameters of the investment. For all strategies, Bridgewater offers fixedonly, performance
only,andfixedplusperformancefeeoptions.
AllWeatherstrategy:
0.50%perannumonthefirst$100MM
0.35%perannumonthenext$150MM
0.25%perannumthereafter
AllWeather@12%strategy:
0.50%perannumatallassetlevels,plus10%ofprofits
PureAlpha@12%strategyandPureAlphaMajorMarkets14%strategy:
2.00%fixedfeeperannum,plus20%ofprofits
PureAlphaat18%strategyandPureAlphaMajorMarkets21%strategy:
3.00%fixedfeeperannum,plus20%ofprofits
Bridgewaters standard minimum fee is $500,000 for its All Weather strategy and $1 million for its Pure
Alpha and Pure Alpha Major Markets strategies, regardless of the Clients assets under management.
BridgewaterfundsofteninvestinotherBridgewaterfunds.Insuchcases,thereisnolayeringoffees.
Bridgewater manages all investments through separate Client accounts and commingled fund vehicles. In
bothcases,Bridgewateradvisoryfeesareexclusiveofauditorfees,custodianandlegalexpenses,transaction
expenses (including brokerage fees), government filing fees and external director fees. Clients may be
charged additional fees by their service providers, such as a fee from a bank to wire money. Bridgewater
fundsareresponsiblefortheirvariousorganizational,administrative,offeringandoperationalexpenses.
ForinvestorswhoinvestthroughBridgewatersfunds,Bridgewatergenerallydeductsfeesdirectlyfromthe
investorscapitalaccount,butfundinvestorsmaybebilledseparatelybasedoninvestorrequirements.For
managed account Clients, Bridgewater bills Clients separately, and Clients can direct that their fees be
deductedfromtheiraccountormaychoosetopayfromaseparateaccount.Generally,feesareassessedand
paidquarterly,butonoccasionareassessedandpaidannually.Allfeesarebilledinarrears.
Bridgewaterdoesnotactinanycapacityasabrokerdealer,andaccordingly,Bridgewaterdoesnotreceive
anycompensationforactingasabrokerdealer.Inaddition,neitherBridgewaternoranyofitssupervised
personsacceptscompensationforthesaleofsecuritiesorotherinvestmentproducts,includingassetbased
saleschargesorservicefeesfromthesaleofmutualfunds.
FormoreinformationseeItem12,specificallyBridgewaterssoftdollarpolicy.
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Item6:PerformanceBasedFeesandSideBySideManagement.
AsnotedinItem5,Bridgewaterchargesperformancebasedfees.
Bridgewater undertakes to act in a fair and equitable manner and to resolve and mitigate conflicts or
potentialconflictsinatimelymanner.BecauseBridgewaterhastheresponsibilityformanagingmorethan
oneaccount,oftenwithdifferentfeestructures,(e.g.,sidebysidemanagement),potentialconflictsofinterest
canarise.
First,thereisapotentialforprovidingpreferentialtreatmenttooneaccountorfundoverothersintermsof
allocationofmanagementtime,resources,andinvestmentopportunities. Tomitigatetheriskoffavoring
certainClientsoverothers,Bridgewaterhasimplementedpoliciesandprocedurestoaddresstradeallocation
decisions, order aggregation and brokerage allocation decisions. These policies and procedures (discussed
more fully in Item 12) seek to ensure fair allocation of investment opportunities among all Clients.
Bridgewaters Account Management and Compliance departments periodically examine performance
dispersionamongaccountsemployingsimilarinvestmentstrategiestoensurethatanymaterialdivergencein
expectedperformanceisadequatelyunderstood.
Second,thereistheincentivetotradesomeaccountsmoreaggressivelythanothersinanefforttomaximize
the profits for those accounts in which Bridgewater would share through a performancebased fee. To
mitigate that risk, Bridgewater designs its systematic portfolio construction system and randomized trade
allocationpoliciesandprocedures(discussedmorefullyinItem12)tominimizeanypotentialforbias.
In some cases, Bridgewater has entered into performancebased fee arrangements with managed account
clients.SuchfeesaresubjecttonegotiationwitheachsuchClient.Bridgewaterstructuresanyperformance
orincentivefeearrangementsubjecttoSection205(a)(1)andRule2053oftheInvestmentAdvisersActof
1940(theAdvisersAct).
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Item7:TypesofClients.
Bridgewaterprovidesinvestmentmanagementservicestoinstitutionalclients,including,butnotlimitedto,
corporate and public pension funds, sovereign wealth funds, endowments, foundations, family offices and
fundoffunds,throughbothmanagedaccountsandcommingledfundvehicles.
ToinvestwithBridgewater,prospectiveinvestorsshouldfamiliarizethemselveswiththelegalrequirements
andtaxconsequencesspecifictoeachfundinvestmentorseparatelymanagedaccount.Forfundinvestments,
anypurchasemadeonthebasisofinformationinconsistentornotcontainedintheofferingmemorandum(s)
providedtotheprospectiveinvestorwillbeatthesoleriskoftheinvestor.Prospectivefundinvestorsare
requiredtocompleteasubscriptionagreement,whichwillrequiredisclosureofcertainprivateinformation
required to substantiate the investors identity and investment qualifications. Fund investors should be
sophisticatedinvestorswho(i)canaffordtherisksassociatedwithfutures,commodities,currencies,options,
forwards and other derivatives trading in fixed income and equity securities, and (ii) have sufficient
knowledgeandexperienceinfinancialandbusinessmatterstoevaluatetheriskofaninvestmentinafundor
accountmanagedbyBridgewateranddetermineitssuitability.
Generally,theminimuminitialinvestmentinafundmanagedbyBridgewateris$10,000,000.However,the
directorsinthecaseofanoffshorefundandthemanagerormembermanager,asapplicable,inthecaseofan
onshore fund, may accept initial subscription amounts below such minimum. The directors, manager and
membermanagerofthefunds,asapplicable,aregenerallyfreetoacceptorrejectsubscriptionsforanyorno
reasonwithoutobligationtodisclosetheunderlyingreason(s).
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Item8:MethodsofAnalysis,InvestmentStrategiesandRiskofLoss.
PureAlphaisanactivemanagementstrategythatisbasedonthebeliefthatthereturnsofassetclassesare
primarily driven by changing fundamental conditions. Bridgewater has been managing Pure Alpha since
1991anditrepresentsthebestofBridgewatersactivemanagementcapabilities,allowingittocapitalizeon
all perceived opportunities and balance them optimally. The strategy is structured around Bridgewaters
proprietaryfixedincome,equity,currency,andcommoditytradingstrategies,whicharethedirectproducts
ofover30yearsofresearchintothefundamentaldriversofglobalassetreturns.Theseindividualstrategies
aresystematicallycombinedintoasinglealphastrategy.BridgewatersPureAlphastrategyhastheflexibility
toestablishlong,short,orspreadpositionsacrosstheabovemarkets.Thestrategyutilizesabroadvarietyof
instrumentsinitsimplementation,including,butnotlimitedto,exchangetradedfuturescontracts,overthe
counterderivatives,cashsecurities,andspotandforwardcontractsintheinternationalcurrencymarket.
As the overall capacity of the Pure Alpha strategy is constrained by a subset of the markets with limited
remainingliquidity,BridgewateralsooffersamodifiedversionofitsPureAlphastrategy,calledPureAlpha
Major Markets, which invests in only those markets that offer significant additional trading capacity. The
PureAlphaMajorMarketsstrategyincludesthosemarketswhereliquidityisnotaconstraintforPureAlpha,
which represents about 2/3 of the Pure Alpha risk budget. Markets are included in the Pure Alpha Major
MarketsstrategywhereBridgewaterstradingvolumeissmallrelativetothevolumeofthemarketandthus
the cost of additional trading is minimal. The same indicators are utilized within each of the markets as in
Pure Alpha, except for those based on shorterterm measures that move around more and lead to higher
turnover. The strategy utilizes a broad variety of instruments in its implementation, including, but not
limited to exchange traded futures contracts, over the counter derivatives, cash securities, and spot and
forwardcontractsintheinternationalcurrencymarket.
AllWeatherisBridgewater'soptimalstrategicassetallocation.Insteadofgeneratingreturnsthroughtrading
active views, All Weather seeks to collect asset class risk premiums in an optimal way. All Weathers
diversification is based on Bridgewaters understanding of the structural relationship of asset classes to
differenteconomicenvironments.Bridgewateridentifiesassetsthatnaturallydiversifyeachotherbasedon
their fundamental relationship to changing growth and inflation environments and allocate risk exposure
withtheobjectiveofcreatingaportfoliothatisbalancedtoperformwellregardlessofshiftsintheeconomic
environment. These asset classes include the fixedincome, inflation linked bond, equity, and commodity
markets.Thestrategyutilizesabroadvarietyofinstrumentsinitsimplementation,including,butnotlimited
to exchange traded futures contracts, over the counter derivatives, cash securities, and spot and forward
contractsintheinternationalcurrencymarket.
Aninvestmentinanyoftheabovereferencedstrategiesinvolvesahighdegreeofrisk.Aninvestmentinthe
strategies is considered appropriate only for sophisticated or professional Clients who can afford the risks
associatedwithtradinginthemarkets.EachClientmusthaveenoughknowledgeandexperienceinfinancial
andbusinessmatterstobecapableofevaluatingthemeritsandrisksofsuchaninvestment.Noguaranteeor
representationismadethatthestrategieswillbesuccessful,thatthetargetedreturnandriskwillbeachieved
or maintained, or that the various investments made in the strategies will have low correlation with each
otherorwiththefinancialmarketsinwhichthestrategiesinvest.
The risk of loss in investing in the strategies can be substantial, including the potential loss of the entire
amount invested by a Client in a fund. Separately managed account Clients can potentially lose more than
their investment if the account is highlyleveraged. Prospective Clients should therefore carefully consider
whethersuchtypeofinvestmentissuitablefortheminlightoftheirfinancialcondition.Beforeinvestingin
the strategies, prospective Clients should be aware of the risks associated with an investment in the
strategies,whichinclude,butarenotlimitedto,theriskfactorslistedbelow.
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Risksofinvestingincertaininstruments
Below InvestmentGrade Debt. The strategies invest in below investmentgrade fixed income securities.
Bondsandotherfixedincomesecurities,including,withoutlimitation,higheryielding(and,therefore,higher
risk) below investmentgrade debt securities contain certain risks. Such securities may face ongoing
uncertainties and exposure to adverse business, financial or economic conditions which could lead to the
issuers inability to meet timely interest and principal payments. High yield bonds (commonly known as
junk bonds) and other debt securities that may be acquired by the strategies may be junior to the
obligationsofcompaniestoseniorcreditors,tradecreditorsandemployees.Thelowerratingofhighyield
debtreflectsagreaterpossibilitythatadversechangesinthefinancialconditionoftheissueroringeneral
economic,financial,competitive,regulatoryorotherconditionsmayimpairtheabilityoftheissuertomake
paymentsofprincipalandinterest.Highyielddebtsecuritieshavehistoricallyexperiencedgreaterdefault
ratesthaninvestmentgradedebtsecurities.
CorporateDebtSecurities.Thestrategiesinvestincorporatedebt.Corporatedebtsecuritiesaresubjectto
the riskofthe issuers inability to meet principal and interest paymentson theobligation and mayalso be
subject to price volatility due to such factors as interest rate sensitivity, market perception of the
creditworthiness of the issuer and general market liquidity. When interest rates decline, the value of the
strategiescorporatedebtsecuritiescanbeexpectedtorise,andwheninterestratesrise,thevalueofthose
securities can be expected to decline. Debt securities with longer maturities tend to be more sensitive to
interestratemovementsthanthosewithshortermaturities.
CreditDefaultSwaps.Thestrategiespurchaseandsellcreditderivativescontractsprimarilycreditdefault
swapsbothforhedgingandotherpurposes.Thetypicalcreditdefaultswapcontractrequiresthesellerto
pay to the buyer, in the event that a particular reference entity experiences specified credit events, the
differencebetweenthenotionalamountofthecontractandthevalueofaportfolioofsecuritiesissuedbythe
referenceentitythatthebuyerdeliverstotheseller.Inreturn,thebuyeragreestomakeperiodicpayments
equaltoafixedpercentageofthenotionalamountofthecontract.Thestrategiesmayalsosellcreditdefault
swaps on a basket of reference entities as part of a synthetic collateralized debt obligation transaction. In
circumstances in which the strategies do not own the debt securities that are deliverable under a credit
default swap, the strategies are exposed to the risk that deliverable securities will not be available in the
market,orwillbeavailableonlyatunfavorableprices,aswouldbethecaseinasocalledshortsqueeze.In
certain instances of issuer defaults or restructurings, it has been unclear under the standard industry
documentation for credit default swaps whether a credit event triggering the sellers payment obligation
had occurred. In either of these cases, the strategies would be unable to realize the full value of the credit
default swap upon a default by the reference entity. As sellers of credit default swaps, the strategies incur
leveragedexposuretothecreditofthereferenceentityandaresubjecttomanyofthesameriskstheywould
incuriftheywereholdingdebtsecuritiesissuedbythereferenceentity.However,thestrategieswillnothave
anylegalrecourseagainstthereferenceentityandwillnotbenefitfromanycollateralsecuringthereference
entitysdebtobligations.Inaddition,thecreditdefaultswapbuyerwillhavebroaddiscretiontoselectwhich
of the reference entitysdebt obligations todeliver tothe strategies followingacredit event and will likely
choosetheobligationswiththelowestmarketvaluetomaximizethepaymentobligationsofthestrategies.In
addition,creditdefaultswapsgenerallytradeonthebasisoftheoreticalpricingandvaluationmodels,which
may notaccurately value such swap positions when established orwhen subsequently traded or unwound
underactualmarketconditions.
Asaresultofrecentinitiativesimplementedbyderivativesmarketparticipants,includingtheInternational
Swaps and Derivatives Association, Inc., designed to implement uniform settlement terms into standard
creditdefaultswapdocumentation,aswellasrefinethepracticesforthetransparentconductofthecredit
default swap market generally, certain of the preceding risks, including, without limitation, liquidity risk
concerningthelackofavailabilityofdeliverablesecurities,maybemitigatedforcertaincategoriesofcredit
defaultswaptransactionscoveredbysuchinitiatives.However,despitethederivativesmarketinitiativesto
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uniformlyaddresstherisksassociatedwiththecreditdefaultswapmarket,therecanbenoguaranteeofthe
successoftheseinitiativesortheabilitytomitigatetheriskswithrespecttocoveredcreditdefaultswaps.In
anyevent,thestrategiesmayenterintocertaincreditdefaultswaptransactionsthatmaynotbecoveredby
theseinitiatives.
The regulation of credit default swaps is evolving, and significant changes in such regulation have been
enactedorproposedandmayadverselyaffectthestrategies.
CurrencyRisk.FluctuationsinexchangeratesbetweentheU.S.dollarandforeigncurrenciesmaynegatively
affect an investment. Adverse changes in exchange rates may erode or reverse any gains produced by
foreigncurrencydenominatedinvestmentsandmayincreaseanylosses.
Derivative Instruments, Generally. The strategies employ the use of derivatives. Derivatives are financial
instrumentsthat derive their value, at least in part, fromthe performance ofanunderlying asset, index,or
interest rate. Examples of derivatives include, but are not limited to, swap agreements, futures contracts,
optionscontracts,andoptionsonfuturescontracts.
Thestrategiesuseofderivativesinvolvesrisksdifferentfrom,orpossiblygreaterthan,therisksassociated
with investing directly in securities or more traditional investments, depending upon the characteristics of
the particular derivative and the strategies portfolios as a whole. Derivatives permit the strategies to
increase or decrease the level of risk of their portfolios, or change the character of the risk to which their
portfoliosareexposed,inmuchthesamewayasthestrategiescanincreaseordecreasethelevelofrisk,or
change the character of the risk, of their portfolios by making investments in specific securities. Certain
swaps,options,andotherderivativeinstrumentsmaybesubjecttovarioustypesofrisks,includingmarket
risk, liquidity risk, counterparty credit risk, legal risk, and operations risk. In addition, swaps and other
derivativescaninvolvesignificanteconomicleverageandmay,insomecases,involvesignificantriskofloss.
Derivativesmayentailinvestmentexposuresthataregreaterthantheircostwouldsuggest,meaningthata
small investment in derivatives could have a large potential impact on the strategies performance. If the
strategiesinvestinderivativesatinopportunetimesorjudgemarketconditionsincorrectly,suchinvestments
maylowerthestrategiesreturnorresultinalosswhichcouldbesignificant.Derivativesarealsosubjectto
various other types of risk, including market risk, liquidity risk, structuring risk, counterparty financial
soundness, credit worthiness and performance risk, legal risk, and operations risk. For example, the
strategiescouldexperiencelossesifthestrategiesareunabletoliquidatetheirpositionsbecauseofanilliquid
secondarymarket.Themarketformanyderivativesis,orcansuddenlybecome,illiquid.Changesinliquidity
mayresultinsignificant,rapid,andunpredictablechangesinthepricesforderivatives.
Engaginginderivativetransactionsinvolvesariskofsubstantiallosstothestrategies.Noassurancecanbe
giventhataliquidmarketwillexistforanyparticularcontractatanyparticulartime.
The regulation of derivative instruments is evolving, and significant changes in such regulation have been
enactedorproposedandmayadverselyaffectthestrategies.
Derivatives with Respect to HighYield and Other Indebtedness. The strategies engage in trading of
derivativeswithrespecttohighyieldandotherdebt.Inadditiontotherisksassociatedwithholdinghigh
yield debt securities, with respect to derivatives involving high yield and other debt, the strategies will
usuallyhaveacontractualrelationshiponlywiththecounterpartyofthederivative,andnotwiththeissuerof
the indebtedness. Generally, the strategies will have no right to directly enforce compliance by the issuer
withthetermsofthederivative,anyrightsofsetoffagainsttheissueroranyvotingrightswithrespecttothe
indebtedness. The strategies will not directly benefit from the collateral supporting the underlying
indebtedness or have the benefit of the remedies that would normally be available to a holder of the
indebtedness.Inaddition,intheeventoftheinsolvencyofthecounterpartytothederivative,thestrategies
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will be treated as general creditors of such counterparty, and will not have any claim with respect to the
underlyingindebtedness.Consequently,thestrategieswillbesubjecttothecreditriskofthecounterpartyas
well as that of the issuer of the indebtedness. As a result, concentrations of such derivatives in any one
counterparty may subject the strategies to an additional degree of risk with respect to defaults by such
counterpartyaswellasbytheissueroftheunderlyingindebtedness.
Emerging Markets Risk. The strategies invest in emerging markets. The risks of foreign investments are
usually much greater for emerging markets. Emerging markets include those in countries defined as
emerging or developing by the World Bank, the International Finance Corporation or the United Nations.
Emergingmarketsareriskierthanmoredevelopedmarketsbecausetheytendtodevelopunevenlyandmay
never fully develop. They are more likely to experience hyperinflation and currency devaluations, which
adverselyaffectreturnstoU.S.investors.Inaddition,manyemergingmarketshavefarlowertradingvolumes
and less liquiditythandeveloped markets. Sincethese marketsare often small, they may be more likely to
suffersharpandfrequentpricechangesorlongtermpricedepressionbecauseofadversepublicity,investor
perceptionsortheactionsofafewlargeinvestors.Inaddition,traditionalmeasuresofinvestmentvalueused,
such as price to earnings ratios, may not apply to certain small markets. Also, there may be less publicly
available information about issuers in emerging markets than would be available about issuers in more
developed capital markets, and such issuers may not be subject to accounting, auditing and financial
reportingstandardsandrequirementscomparabletothosetowhichU.S.companiesaresubject.
Manyemergingmarketshavehistoriesofpoliticalinstabilityandabruptchangesinpolicies.Asaresult,their
governmentsaremorelikelytotakeactionsthatarehostileordetrimentaltoprivateenterpriseorforeign
investmentthanthoseofmoredevelopedcountries,includingexpropriationofassets,confiscatorytaxation,
highratesofinflationorunfavorablediplomaticdevelopments.Inthepast,governmentsofsuchnationshave
expropriated substantial amounts of private property, and most claims of the property owners have never
been fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is
possible that the strategies could lose the entire value of their investments in the affected market. Some
countries have pervasiveness of corruption and crime that may hinder investments. Certain emerging
markets may also face other significant internal or external risks, including the risk of war, and ethnic,
religious and racial conflicts. In addition, governments in many emerging market countries participate to a
significant degree in their economies and securities markets, which may impair investment and economic
growth. National policies that may limit the strategies investment opportunities include restrictions on
investmentinissuersorindustriesdeemedsensitivetonationalinterests.
Emergingmarketsmayalsohavedifferinglegalsystemsandtheexistenceorpossibleimpositionofexchange
controls,custodialrestrictionsorotherforeignorU.S.governmentallawsorrestrictionsapplicabletosuch
investments.Sometimes,theymaylackorbeintherelativelyearlydevelopmentoflegalstructuresgoverning
privateandforeigninvestmentsandprivateproperty.Inadditiontowithholdingtaxesoninvestmentincome,
somecountrieswithemergingmarketsmayimposedifferentialcapitalgainstaxesonforeigninvestors.
Practices in relation to settlement of securities transactions in emerging markets involve higher risks than
thoseindevelopedmarkets,inpartbecausethestrategieswillneedtousebrokersandcounterpartiesthat
are less well capitalized, and custody and registration of assets in some countries may be unreliable. The
possibilityoffraud,negligence,undueinfluencebeingexertedbytheissuerorrefusaltorecognizeownership
exists in some emerging markets, along with other factors, could result in ownership registration being
completely lost. The strategies would absorb any loss resulting from such registration problems and may
havenosuccessfulclaimforcompensation.Inaddition,communicationsbetweenemergingmarketcountries
maybeunreliable,increasingtheriskofdelayedsettlementsorlossesofsecuritycertificates.
Equity and EquityRelated Securities and Instruments. The strategies take long and short positions in
commonstocksofU.S.andnonU.S.issuerstradedonnationalsecuritiesexchangesandOTCmarkets.The
strategiesalso,directlyorindirectly,purchaseequityrelatedsecuritiesandinstruments,suchasconvertible
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securities, warrants, stock options, and individual stock futures. The value of equity securities varies in
response to many factors. Factors specific to an issuer, such as certain decisions by management, lower
demandforitsproductsorservices,oreventhelossofakeyexecutive,couldresultinadecreaseinthevalue
oftheissuerssecurities.Factorsspecifictotheindustryinwhichtheissuerparticipates,suchasincreased
competitionorcostsofproductionorconsumerorinvestorperception,canhaveasimilareffect.Thevalueof
anissuersstockcanalsobeadverselyaffectedbychangesinfinancialmarketsgenerally,suchasanincrease
ininterestratesoradecreaseinconsumerconfidence,thatareunrelatedtotheissueritselforitsindustry.
Stockswhichthestrategieshavesoldshortmaybefavorablyimpacted(tothedetrimentofthestrategies)by
the same factors (e.g., decreased competition or costs or a decrease in interest rates). In addition, certain
options and other equityrelated instruments may be subject to additional risks, including liquidity risk,
counterpartycreditrisk,legalrisk,andoperationsrisk,andmayinvolvesignificanteconomicleverageand,in
somecases,besubjecttosignificantrisksofloss.Thesefactorsandotherscancausesignificantfluctuations
inthepricesofthesecuritiesinwhichthestrategiesinvestandcanresultinsignificantlosses.
ExchangeTraded Funds (ETFs). The strategies invest in ETFs. ETFs represent shares of ownership in
either funds or unit investment trusts that hold portfolios of common stocks, bonds or other instruments,
which are designed to generally correspond to the price and yield performance of an underlying index. A
primaryriskfactorrelatingtoETFsisthatthegenerallevelofstockorbondpricesmaydecline,thusaffecting
the value of an equity or fixed income ETF, respectively. An ETF may also be adversely affected by the
performanceofthespecificsectororgroupofindustriesonwhichitisbased.Moreover,althoughETFsare
designedtoprovideinvestmentresultsthatgenerallycorrespondtothepriceandyieldperformanceoftheir
underlyingindices,ETFsmaynotbeabletoexactlyreplicatetheperformanceoftheindicesbecauseoftheir
expensesandotherfactors.
Fixed Income Securities, Generally. The strategies invest in fixed income securities. Investment in these
securitiesmayofferopportunitiesforincomeandcapitalappreciation,andmayalsobeusedfortemporary
defensivepurposesandtomaintainliquidity.Fixedincomesecuritiesareobligationsoftheissuertomake
paymentsofprincipaland/orinterestonfuturedates,andinclude,amongothersecurities:bankdebt,bonds,
notes,anddebenturesissuedbycorporations;debtsecuritiesissuedorguaranteedbytheU.S.governmentor
one of its agencies or instrumentalities or by a nonU.S. government or one of its agencies or
instrumentalities; municipal securities; and mortgagebacked and assetbacked securities. These securities
maypayfixed,variable,orfloatingratesofinterest,andmayincludezerocouponobligations.Fixedincome
securities are subject to the risk of the issuers or a guarantors inability to meet principal and interest
paymentsonitsobligations(i.e.,creditrisk)andaresubjecttopricevolatilityduetofactorssuchasinterest
rate sensitivity, market perception of the creditworthiness of the issuer, and general market liquidity (i.e.,
market risk). The strategies fixed income investments may be subject to early redemption features,
refinancingoptions,prepaymentoptionsorsimilarprovisionswhich,ineachcase,couldresultintheissuer
repayingtheprincipalonanobligationheldbythestrategiesearlierthanexpected.Thismayhappenwhen
thereisadeclineininterestratesorwhenaborrowersperformanceallowstherefinancingofcertainclasses
ofdebtwithlowercostdebt.Totheextentearlyprepaymentsincrease,theymayhaveamaterialadverse
effectonthestrategiesinvestmentobjectivesandtheprofitsoncapitalinvestedinfixedincomeinvestments.
As with other investments made by the strategies, there may not be a liquid market for any of the debt
instruments in which the strategies invests, which may limit the strategies ability to sell these debt
instrumentsortoobtainthedesiredprice.
Foreign Futures Transactions. The strategies invest in foreign futures transactions. Foreign futures
transactionsinvolveexecutingandclearingtradesonnonU.S.futuresexchanges.Thisisthecaseevenifthe
foreignexchangeisformallylinkedtoaU.S.futuresexchange,wherebyatradeexecutedononeexchange
liquidatesorestablishesapositionontheotherexchange.NoU.S.organizationregulatestheactivitiesofa
foreignexchange,includingtheexecution,delivery,andclearingoftransactionsonsuchanexchange,andno
domesticregulatorhasthepowertocompelenforcementoftherulesoftheforeignexchangeorthelawsof
theforeigncountry.Moreover,suchlawsorregulationswillvarydependingontheforeigncountryinwhich
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thetransactionoccurs.Forthesereasons,thestrategiesmaynotbeaffordedcertainoftheprotectionswhich
applytodomestictransactions,includingtherighttousedomesticalternativedisputeresolutionprocedures.
Inparticular,fundsreceivedfromcustomerstoutilizetosatisfymarginrequirementsmaynotbeprovided
thesameprotectionsasfundsreceivedtomarginfuturestransactionsondomesticexchanges.Inaddition,
the price of any foreign futures or option contract and, therefore, the potential profit and loss resulting
therefrom, may be affected by any fluctuation in the foreign exchange rate between the time the order is
placedandthetimetheforeignfuturescontractisliquidatedortheforeignoptioncontractisliquidatedor
exercised.
Thesuccessfuluseoffuturesforspeculativepurposesissubjecttotheabilitytopredictcorrectlymovements
inthedirectionoftherelevantmarket,and,totheextentthetransactionisenteredintoforhedgingpurposes,
toascertaintheappropriatecorrelationbetweenthetransactionbeinghedgedandthepricemovementsofthe
futurescontract.
ForwardContracts.Thestrategiesengageinthetradingofforwardcontractsfromtimetotime.Incontrast
tocontractstradedonanexchange,forwardcontractsarenotguaranteedbyanyexchangeorclearinghouse
andaresubjecttothecreditworthinessofthecounterpartyofthetrade.Banksandotherdealerswithwhom
the strategies transact in such forwards may require the strategies to deposit margin with respect to such
trading,althoughmarginrequirementsareoftenminimalornonexistent.Thestrategiescounterpartiesare
not required to continue to make markets in such contracts and these contracts can experience periods of
illiquidity,sometimesofsignificantduration.Therehavebeenperiodsduringwhichcertaincounterparties
haverefusedtocontinuetoquotepricesforforwardcontractsorhavequotedpriceswithanunusuallywide
spread (the difference between the price at which a buyer is prepared to buy and that at which a seller is
prepared to sell). Arrangements to trade forward contracts may be made with only one or a few
counterparties,andliquidityproblemsthereforemightbegreaterthanifsucharrangementsweremadewith
numerouscounterparties.Inaddition,disruptionscanoccurinanymarkettradedbythestrategiesdueto
unusuallyhightradingvolume,politicalintervention,orotherfactors.Marketilliquidityordisruptioncould
resultinmajorlossestothestrategies.
Futures. The strategies use futures. Futures positions may become illiquid because certain commodity
exchangeslimitfluctuationsincertainfuturescontractpricesduringasingledaybyregulationsreferredtoas
dailypricefluctuationlimitsordailylimits.Undersuchdailylimits,duringasingletradingdaynotrades
may be executed at prices beyond the daily limits. Once the price of a particular futures contract has
increasedordecreasedbyanamountequaltothedailylimit,positionsinthatcontractcanneitherbetaken
nor liquidated unless traders are willing to effect trades at or within the limit. It is also possible that an
exchangeortheCFTC(U.S.CommodityFuturesTradingCommission)maysuspendtradinginaparticular
contract, order immediate liquidation and settlement of a particular contract, implement retroactive
speculative position limits, or order that trading in a particular contract be conducted for liquidation only.
The circumstances described above could prevent the strategies from liquidating unfavorable positions
promptly and subject the strategies to substantial losses. These circumstances could also impair the
strategiesabilitytowithdrawtheirinvestmentstosatisfyredemptionrequestsbyClientsinatimelymanner.
Inrareinstances,afuturespositionthatisnotoffsetbeforeitexpiresmayresultinphysicaldeliveryofan
underlying commodity which may result in increased transactions costs for the strategies and subject the
strategiestoadditionalrisksrelatedtosuchphysicaldelivery.
InflationLinked Fixed Income Securities. The strategies invest in inflationlinked fixed income securities.
Inflationlinked fixed income securities are fixed income securities whose principal value is periodically
adjusted according to the rate of inflation in a particular market. Further, in certain interest rate
environments, such as when real interest rates are rising faster than nominal interest rates, inflation
protectedsecuritiesmayexperiencegreaterlossesthanotherfixedincomesecuritieswithsimilardurations.
In addition, while inflationlinked securities and instruments generally are expected to be protected from
longterminflationarytrends,shorttermincreasesininflationmayleadtoadeclineintheirvalue.Therecan
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benoassurancethattheinflationindicestowhichsuchsecuritiesarelinkedcanaccuratelymeasurethereal
rate of inflation in the prices of goods and services. In any event, the value of an inflation index will lag
behindthecontemporaneouspricesofgoodsandservices.
InvestmentsinCertainMetalsandCommodities.Thestrategiesinvestindirectlyinmetals,commoditiesand
similarmaterials.Sincesuchinvestmentsdonotgenerateanyinvestmentincome,thesolesourceofreturn
fromsuchinvestmentswouldbefromgainsrealizedonsalesoftheinvestments,andanegativereturnwould
be realized to the extent such investments are sold at a loss. Certain metals, commodities and similar
materials may incur storage or insurance costs that are higher than the custody fees paid on traditional
financial assets. Prices of such metals, commodities and materials are affected by factors such as cyclical
economicconditions,politicalevents,andmonetarypoliciesofvariousgovernmentsandcountries.Certain
metals, commodities and similar materials are also subject to governmental action for political reasons.
Thereisalsoariskthatsuchmetals,commoditiesorsimilarinvestmentscouldbelost,damagedorstolenor
thataccesstosuchinvestmentscouldberestrictedbynaturalevents(e.g.,forcemajeure)ortortioushuman
actions. Markets arethereforeat timesvolatile, andthere may besharp fluctuations in prices even during
periodsofrisingprices.
NonU.S. Government Obligations and Related Risks. The strategies invest in nonU.S. government
obligations. Investments by the strategies in nonU.S. debt securities, whether issued by a nonU.S.
government, bank, corporation or other issuer, may present a greater degree of risk than investments in
securities of domestic issuers because of less publiclyavailable financial and other information, less
securitiesregulation,potentialimpositionofforeignwithholdingandothertaxes,war,expropriationorother
adversegovernmentalactions.NonU.S.banksandtheirnonU.S.branchesarenotregulatedbyU.S.banking
authorities, and generally are not bound by the accounting, auditing and financial reporting standards
applicabletoU.S.banks.ThelegalremediesofClientsmaybemorelimitedthantheremediesavailableinthe
UnitedStates.
Obligations of Governments, Their Agencies and Instrumentalities. The strategies invest in government
securities. Government securities are obligations of, or are guaranteed by, governments, their agencies or
instrumentalities.Theseinstrumentsincludebills,certificatesofindebtednessandnotesandbondsissuedby
governments or by government agencies or instrumentalities. Some government securities, such as U.S.
Treasury bills and bonds, are supportedby the full faith and creditof thegovernment treasury; othersare
supportedbytherightoftheissuertoborrowfromthegovernmenttreasury;othersaresupportedbythe
discretionaryauthorityofthegovernmenttopurchasetheagencysobligations;andstillothersaresupported
onlybythecreditoftheinstrumentality.Accordingly,therecouldbesignificantcreditexposureandriskby
investingsuchsecurities.
Options.Thestrategiestradeoptions.Therearerisksassociatedwiththesaleandpurchaseofcalloptions.
Theseller(writer)ofacalloptionwhichiscovered(i.e.,thewriterholdstheunderlyingsecurity)keepsthe
risk of a decline in the market price of the underlying security below the purchase price of the underlying
securityplusthepremiumreceived,andgivesuptheopportunityforgainontheunderlyingsecurityabove
the exercise price of the option (but keeps the premium for such option). The seller of an uncovered call
optionalsokeepsthepremiumforsuchoptionbutassumestheriskofatheoreticallyunlimitedincreasein
themarketpriceoftheunderlyingsecurityabovetheexercisepriceoftheoption.Thebuyerofacalloption
assumestheriskoflosingthepremiumpaidforthecalloption,plusthebuyersopportunitycosts.
Inaddition,therearerisksassociatedwiththesaleandpurchaseofputoptions.Theseller(writer)ofaput
optionwhichiscovered(i.e.,thewriterhasashortpositionintheunderlyingsecurity)keepstheriskofan
increaseinthemarketpriceoftheunderlyingsecurityabovethetransactionalprice(inestablishingtheshort
position)oftheunderlyingsecurityplusthepremiumreceived,andgivesuptheopportunityforgainonthe
underlyingsecuritybelowtheexercisepriceoftheoption.Iftheselleroftheputoptionownsaputoption
coveringanequivalentnumberofshareswithanexercisepriceequaltoorgreaterthantheexercisepriceof
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theputwritten,thepositionmaybefullyhedgediftheoptionownedexpiresatthesametimeorlaterthan
theoptionwritten.Thesellerofanuncoveredputoptionassumestheriskofadeclineinthemarketpriceof
theunderlyingsecuritybelowtheexercisepriceoftheoption(butkeepsthepremiumforsuchoption).The
buyer of a put option assumes the risk of losing the premium paid for the put option, plus the buyers
opportunitycosts.
Clientsshouldalsobeawarethatthestrategieswilltradeforeignoptionscontracts.Transactionsonmarkets
located outside the United States, including markets formally linked to a market, may be subject to
regulations that offer different or diminished protection to the strategies and their Clients. Further,
regulatory authorities may be unable to compel the enforcement of the rules of regulatory authorities or
marketsinjurisdictionswheretransactionsforthestrategiesmaybeeffected.
Repurchase and Reverse Repurchase Agreements. The strategies enter into repurchase or reverse
repurchase agreements. These arrangements involve the purchase of securities by a party that
simultaneously agrees to resell such securities to the original seller at a predetermined price and time,
therebydeterminingtheyieldonthepurchasemoneyduringthereverserepurchaseperiod.Thepurchaser
bears the risk that the original seller will not pay the agreed upon repurchase price on the closing date.
Althoughtherepurchaseagreementprovidesthat,intheeventofdefault,thepurchaserisentitledtosellthe
purchasedsecuritiestothirdparties,thepurchaserwillincuralossifsuchdefaultoccurswhenthevalueof
thepurchasedsecuritiesislessthantheagreeduponrepurchaseprice.Similarly,theoriginalsellerbearsthe
riskthat,followingtheappreciationofthepurchasedsecurities,thepurchaserwilldefaultonitsobligationto
resell the securities to the original seller. In addition, like all OTC transactions, there is significant
counterparty risk involved in repurchase transactions. For example, securities positions held by dealers in
repurchasetransactionsthataretransferredtoothersbysuchdealersaresubjecttotheriskofsuchdealers
defaultorbankruptcypriortoorattheclosingdate.
Sovereign Debt. The strategies may purchase sovereign debt issued by governments, their agencies and
instrumentalitieseitherinthecurrencyoftheirdomicileorinaforeigncurrency.Investorsinsovereigndebt
maybeaskedtoparticipateindebtrestructuring,includingthedeferralofinterestandprincipalpayments,
andmayalsoberequestedbytheissuertoextendadditionalloans.Thereisnocurrentmeansofcollecting
ondefaultedsovereigndebtaspartofbankruptcyorotherproceedings.
Swap Agreements. The strategies enter into swap agreements. Swap agreements are privately negotiated
OTCderivativeproductsinwhichtwopartiesagreetoexchangeactualorcontingentpaymentstreamsthat
may be calculated in relation to a rate, index, instrument, or certain securities, and a particular notional
amount. Swaps may be subject to various types of risks, including market risk, liquidity risk, structuring
risk, tax risk, and the risk of nonperformance by the counterparty, including risks relating to the financial
soundnessandcreditworthinessofthecounterparty.Swapscanbeindividuallynegotiatedandstructuredto
include exposure to a variety of different types of investments or market factors. Depending on their
structure, swaps may increase or decrease the strategies exposure to commodity prices, equity or debt
securities,longtermorshortterminterestrates(intheUnitedStatesorabroad),nonU.S.currencyvalues,
mortgagebacked securities, corporate borrowing rates, or other factors such as security prices, baskets of
securities, orinflationrates andmay increase ordecrease theoverall volatilityofthe strategies portfolios.
Swapagreementscantakemanydifferentformsandareknownbyavarietyofnames.Thestrategiesarenot
limitedtoanyparticularformofswapagreementifBridgewaterdeterminesthatotherformsareconsistent
withthestrategiesinvestmentobjectivesandpolicies.Asignificantfactorintheperformanceofswapsisthe
change in individual commodity values, specific interest rates, currency values, or other factors that
determinetheamountsofpaymentsduetoandfromtheswapcounterparties.
Page15
GeneralrisksofinvestingwithBridgewater
Competitivemarkets.Themarketforinvestmentopportunitiesiscompetitiveandinvolvesahighdegreeof
uncertainty. There can be no assurance that Bridgewaters management will succeed in consistently
identifying and securing investments on attractive terms. Additional strategies with similar investment
objectives and/or sourcing methodologies may be formed in the future by other unrelated parties. As a
result,therecanbenoassurancethatthestrategieswillbeabletomakeportfolioinvestmentsthatsatisfythe
strategiesreturnobjectivesorrealizeBridgewatersviewoftheirpotentialvalues.
Concentration Risk. The strategies, at certain times, hold large positions in a relatively limited number of
investments.Thestrategiescouldbesubjecttosignificantlossesiftheyholdarelativelylargepositionina
singleissuer,industry,marketoraparticulartypeofinvestmentthatdeclinesinvalue,andthelossescould
increase even further if the investments cannot be liquidated without adverse market reaction or are
otherwiseadverselyaffectedbychangesinmarketconditionsorcircumstances.Thestrategiesinvestments
could potentially be concentrated in relatively few issuers, industries, markets or particular types of
investments.
Conflicts of Interest and No Devotion of Full Time and Attention. Given the different account structures
managedbyBridgewater,certaininvestmentdecisions,employeetime,anddevotionofresourcescouldgive
rise to conflicts of interest among different Client accounts. Moreover, in managing and directing Client
investments,Bridgewatermayrelyoncertainpersonnelwhosedepartureorinabilitytofulfillcertainduties
may adversely affect such investments. Bridgewater has a compliance policy that details controls and
proceduresthroughwhichitseekstominimizecomplianceriskstoitsbusiness.However,noassurancescan
begiventhatBridgewaterwillbeabletoidentifyorpreventcompliancerelatedrisks.Clientswillhaveno
right or power to participate in the daytoday management or control of Bridgewaters business, nor an
opportunitytoevaluatethespecificstrategiesused,orinvestmentsmade,bythestrategiesorthetermsof
anysuchinvestment.
CreditRatings.Bridgewaterusescreditratingsissuedbycreditratingagenciesaspartofitsevaluationofthe
creditworthinessofacounterpartyorthesafetyofprincipalandinterestpaymentsofratedsecurities.These
ratingsdonot,however,fullyreflectthetruerisksofaninvestment.Inaddition,creditratingagenciesmay
ormaynotmaketimelychangesinaratingtoreflectchangesintheeconomyorintheconditionoftheissuer
thataffectthemarketvalueofthesecurity.Consequently,creditratingsareusedonlyasapartialindicatorof
investment quality. It is likely that many of the strategies investments will not be rated bya credit rating
agency.
Effect of Speculative Position Limits. The CFTC and some exchanges have rules limiting the maximum net
longornetshortpositionswhichanypersonorgroupmayown,holdorcontrolincertainfuturescontracts.
AnysuchlimitmaypreventBridgewaterfromacquiringpositionsforthestrategiesoritsotherClientsthat
might otherwise have been desirable or profitable. In addition, in applying such limits, the CFTC and
exchangesgenerallyrequireaggregationofthepositionsowned,held,orcontrolledbyBridgewaterand/or
its principals. Under such circumstances, the strategies could be required to limit their use of futures or
liquidatetheirpositionsonsuchexchanges.
Electronic Trading. Bridgewatertradeson electronictradingand order routingsystems, which differ from

traditionalopenoutcrytradingandmanualorderroutingmethods.Transactionsusinganelectronicsystem
are subject to the rules and regulations of the exchanges offering the system or listing the instrument.
Characteristics of electronic trading and order routing systems vary widely among the different electronic
systemswithrespecttoordermatchingprocedures,openingandclosingproceduresandprices,tradeerror
policies, and trading limitations or requirements. There are also differences regarding qualifications for
access and grounds for termination and limitations on the types of orders that may be entered into the
system. Each of these matters may present different risks with respect to trading on or using a particular
Page16
system.Eachsystemmayalsopresentrisksrelatedtosystemaccess,varyingresponsetimesandsecurity.In
thecaseofinternetbasedsystems,theremaybeadditionalrisksrelatedtoserviceprovidersandthereceipt
and monitoring of electronic mail. Trading through an electronic trading or order routing system is also
subject to risks associated with system or component failure, which may adversely impact the trading
activitiesofthestrategies.
ERISA Considerations. In most cases, except for nonERISA separate account clients, the strategies expect
thattheirassetswillconsistofplanassetssubjecttoTitleIoftheU.S.EmployeeRetirementIncomeSecurity
Act of 1974 (ERISA) or Section 4975 of the Internal Revenue Code, in which case the management and
operation of the strategies would, among other things, become subject to ERISAs fiduciary and prohibited
transactionrules.Insuchacase,thestrategieswillbesubjecttoinvestmentlimitationsandrestrictionsthat
would not otherwise be applicable and could materially impact the performance of the strategies. For
example,thestrategiescouldbeprohibited,orotherwiserestricted,frompurchasingorholdingcertainasset
backedsecurities,residentialmortgagebackedsecurities,participations,collateralizedloanobligationsand
similar instruments notwithstanding that such instruments might otherwise be appropriate investment
opportunitiesforthestrategies.
Exchange Rate Fluctuations. The strategies accounts will be denominated in U.S. Dollars. Clients bear all
risksofexchangeratefluctuationswithrespecttoanyinvestmentsbythestrategiesusingcurrenciesother
than U.S. Dollars. Also, certain investments of the strategies may be in currencies other than U.S. Dollars.
UnlessthestrategieshedgeagainstfluctuationsinexchangeratesbetweentheU.S.Dollarandthecurrencies
in which the strategies investments are denominated in foreign markets, any profits which the strategies
might realizein suchtrading could be eliminated asaresult ofadverse changes in exchange rates, andthe
strategiescouldevenincurlossesasaresultofanysuchchanges.Evenifthestrategieshedgeagainstsuch
fluctuations,thereisnoguaranteesuchhedgeswilleliminateorreducesuchlosses.
Failure of Banks, Brokers, Counterparties and Exchanges. In exchangetraded as well as offexchange

transactions (also known as overthecounter, or OTC transactions), the strategies will be exposed to the
creditrisk(alsoknownascounterpartyrisk)ofbanks,brokers,principalcounterpartiesandexchanges.The
Clientassetsatthecustodianorprimebrokeraswellasthestrategiesprimebrokersorotherpartiesmay
holdthestrategiesassets,includingassetsheldascollateralformarginloansorotherfinancingprovidedto
the strategies. Under the terms of such arrangements and under applicable law, a secured party may be
permittedtorehypothecatesuchassetsinconnectionwithsecuritieslendingorothertransactionsentered
intobythesecuredparty.Dependinguponthetypesoffinancialinstrumentstraded,thestrategiesmaybe
subjecttoriskoflossoftheirassetsondepositwithabankorbroker(e.g.,aprimebroker)intheeventofthe
banksorbrokersinsolvency,theinsolvencyofanyclearingbrokerthroughwhichthebrokerexecutesand
clears transactions on behalf of the strategies, or the insolvency of an exchange clearing house. Banks or
brokerage firms selected by the strategies banks or brokers to act as custodians may become insolvent,
causing the strategies to lose all or a portion of the funds or securities held by those custodians or to
encounter delays recovering assets. A Clients assets that are deposited as margin (or collateral) for OTC
derivativecontracts,suchasOTCcurrencyforwards,arenotrequiredunderCFTCregulationsoranyother
regulationstobeheldinacustomersegregatedaccountatabankorbroker.Consequently,assetsdeposited
as margin for OTC derivative contracts may be indistinguishable, for insolvency purposes, from the
proprietaryassetsofsuchbankorbrokerandthereforemaybesubjecttocreditorsclaimsintheeventofthe
insolvencyofsuchbankorbroker,andnotavailablefortimelyrecallbythestrategies.Forexample,ifthe
strategies invest in OTC forwardcontracts, they will be exposedto credit risk with respect to eachof their
counterparties. In the event of an insolvency of a counterparty, the strategies may be treated as general
creditors of such counterparty and may not be able to recover any of their assets held as margin by the
insolventcounterparty,oranyunrealizedgainsonopencontracts.
Inaddition,onaprincipalbasis,thestrategiesengageindirectorindirecttradingofsecurities,currencies,
derivatives(includingswaps,otherforwardcontractsandoptions),andotherOTCinstruments.Assuch,the
Page17
strategies,asprincipalstoacounterpartywhichisindefault,couldexperiencebothdelaysinliquidatingor
transferring(novating)therelevantprincipalfinancialinstrument(suchasaswapposition),future,collateral
(ifany),orotherOTCinstrument.Lossestothestrategiesareprobableinthecaseofcounterpartydefault,
includingthosearisingfrom:(i)theriskofthecounterpartysinabilityorrefusaltoperformonaprincipal
transactionwiththestrategies;(ii)possibledeclineinthevalueofanycollateralpreviouslytakenfromthe
counterparty during the period in which the strategies seek to enforce their rights with respect to such
collateral; (iii) the strategies legal and other professional expenses of enforcing their rights; (iv) legal
uncertaintyconcerningtheenforceabilityofcertainrightsundertheagreementsandpossiblelackofpriority
for the strategies against collateral posted under these agreements; and (v) the strategies inability to fully
controlcustodyoftheirassetspledgedascollateraltoacounterparty.Anysuchlossesmaybesubstantial,
duetothenatureandoperationofderivativestrading.Forexample,thestrategieswillnotbeexcusedfrom
performanceonanysuchtransactionsduetothedefaultofthirdpartycounterpartieswithrespecttoother
derivativecontractsinwhichthestrategiestradingstrategieswereintendedtohavesubstantiallyoffsetsuch
contracts.
Failure of a Futures Broker. The strategies have credit risk to each of their futures broker(s) and the
exchanges on which such futures broker(s) trade. Moreover, the strategies may, in their sole discretion,
maintain all of their exchangetraded futures positions with a single futures broker. Where such futures
brokerisafuturescommissionmerchantregisteredwiththeCFTC,however,suchbrokerisrequiredbyCFTC
regulations to segregate from its own assets, and for the sole benefit of its customers (including the
strategies),allassetsheldbyafuturesbrokerwithrespecttoexchangetradedfuturesandoptionscontracts,
includinganamountequaltothenetunrealizedgainonallsuchopencontracts.Exchangetradedcontracts
aremarkedtomarketonadailybasis,withvariationsinvaluecreditedorchargedtothecustomersaccount,
andanyfundsreceivedinconnectionwithprofitsonafuturesoroptionspositionbelongingtothecustomer
should be treated as the property of the customer and maintained by a futures broker in a customer
segregatedaccount.Afuturesbrokerisalsorequiredtodeposititsownfundsintoitscustomersegregated
accountstotheextentnecessarytoensurethatsuchaccountsdonotbecomeundersegregatedandthatno
customersexcessfundsinthesegregatedaccountmaybeusedtomeetthemarginrequirementsofanother
customer.Intheeventofafuturesbrokersfinancialcollapse,insolvency,orbankruptcy,thecustomerfunds
held in a futures brokers customer segregated accounts, assuming such funds were properly segregated,
should be insulated as an identifiable separate pool of assets and, as such, should not be available for
distributiontosuchfuturesbrokersgeneralcreditors.Undersuchcircumstances,eachcustomerwithassets
on deposit in such futures brokers customer segregated account would receive its pro rata share of such
assets.Aslongassuchfuturesbrokeriscollectingmarginpaymentsfromitscustomersoradvancingitsown
fundsinaccordancewithCFTCregulations,eachcustomershouldreceiveallofitsassetsfromthecustomer
segregated account. To the extent that any segregated account may be undermargined, however, the
deficiencywouldbesharedonaproratabasisbyeachcustomerholdingassetsinsuchaccount.
Fraud. In making certain investments, Bridgewater may rely upon the accuracy and completeness of
representationsmadebytheissuerofsuchinvestment,butcannotguaranteetheaccuracyorcompletenessof
suchrepresentations.Ofconcerninoriginatingandinpurchasinginvestmentsisthepossibilityofmaterial
misrepresentationor omission on the part of an issuer. Such inaccuracy or incompletenessmay adversely
affectthevaluationofanycollateralunderlyinganinvestment,ormayadverselyaffectthelikelihoodthata
lienonthecollateralsecuringaninvestmenthasbeenproperlycreatedandperfected.Instancesoffraudand
otherdeceptivepracticescommittedbyseniormanagementofcertaincompaniesinwhichthestrategiesmay
invest may undermine the ability of Bridgewater to conduct effective due diligence on, or successfully exit
investmentsmadein,suchcompanies.Inaddition,financialfraudmaycontributetooverallmarketvolatility,
whichcannegativelyimpactthestrategiesinvestmentprograms.Undercertaincircumstances,paymentsto
the strategies may be reclaimed if they are later determined to have been made with an intent to defraud
creditorsormakeapreferentialpayment.
Page18
Government Investment Restrictions. Government regulations and restrictions in some countries may limit
theamountandtypeofinvestmentsthatmaybepurchasedbythestrategies,orthesaleofsuchinvestments
oncepurchased.Suchrestrictionsmayalsoaffectthemarketprice,liquidityandrightsofinvestmentsthat
may be purchased by the strategies and may increase expenses for the strategies. In addition, the
repatriationofbothinvestmentincomeandcapitalisoftensubjecttorestrictions,suchastheneedforcertain
governmentalconsents,andevenwherethereisnooutrightrestriction,themechanicsofrepatriationor,in
certain countries, the inadequacy of the U.S. Dollar currency available to nongovernmental entities, may
affectcertainaspectsoftheoperationofthestrategies.IncountriesthathaveaninadequatesupplyofU.S.
Dollarcurrency,issuersthathaveanobligationtopaythestrategiesinU.S.Dollarsmayexperiencedifficulty
anddelayinexchanginglocalcurrencytoU.S.Dollarcurrencyandthushinderthestrategiesrepatriationof
investment income and capital. Moreover, such difficulty may be exacerbated in instances where
governmentalentitiesinsuchcountriesaregivenpriorityinobtainingsuchscarcecurrency.Furthermore,
the strategies ability to invest in the securities markets of several countries is restricted or controlled to
varyingdegreesbylawsrestrictingforeigninvestmentandtheserestrictionsmay,incertaincircumstances,
prohibitthestrategiesfrommakingdirectinvestments.Regulatorsandexchangesareauthorizedtoregulate
tradingorotheractivitywithrespecttocertainmarketsandmayimposeotherrestrictionswhichcouldhave
significant adverse effects on the strategies portfolios and the ability of the strategies to pursue their
investment strategies and achieve their investment objectives. For example, certain jurisdictions have
recentlyimposedrestrictionsandreportingrequirementsonshortselling.
Illiquidmarkets.Insomecircumstances,themarketsinwhichthestrategiesinvestcanbeilliquid,makingit
difficult to acquire or dispose of investments at the prices quoted on the various exchanges or at normal
bid/offerspreadsquotedoffexchange.Duringperiodsoflimitedliquidity,thestrategiesabilitytoacquireor
dispose of investments at a price and time that the strategies deem advantageous may be impaired. As a
result,inperiodsofrisingmarketprices,thestrategiesmaybeunabletoparticipateinpriceincreasesfullyto
the extent that they are unable to acquire desired positions quickly; conversely, the strategies inability to
disposefullyandpromptlyofpositionsindecliningmarketswillcausetheirnetassetvaluestodeclineasthe
value of unsold positions is marked to lower prices. These and other factors mean that, as with other
investments,therecanbenoassurancethattradinginthemarketswillbeprofitable.Thesecircumstances
couldalsoimpairthestrategiesabilitytomakedistributionstowithdrawingorredeemingClientsinatimely
mannerandmaycausethestrategiestosuspendredemptions.
Legal and Regulatory Risks. Legal and regulatory changes could occur which may adversely affect the
strategiesorBridgewater.Forexample,thelegalandregulatoryenvironmentforderivativeinstrumentsis
evolving,andchangesintheregulationofderivativeinstrumentsmayadverselyaffectthevalueofderivative
instruments held by the strategies and the ability of the strategies to pursue their trading strategies.
Similarly,theregulatoryenvironmentforleveragedClientsandhedgefundsisevolving,andchangesinthe
direct or indirect regulation of leveraged Clients or hedge funds may adversely affect the ability of the
strategiestopursuetheirinvestmentobjectivesand/ortradingstrategies.Inaddition,certainjurisdictions
have recently imposed restrictions and reporting requirements on short selling. Further, regulators and
exchanges are authorized to regulate trading or other activity with respect to certain markets and may
impose other restrictions which could have significant adverse effects on the strategies portfolios and the
abilityofthestrategiestoachievetheirinvestmentobjectives.
The SEC, the CFTC, other regulators and selfregulatory organizations and exchanges are authorized to
intervene,directlyandbyregulation,incertainmarkets,andmayrestrictorprohibitmarketpractices,such
as the shortselling of certain stocks. The duration of such restrictions and type of securities affected may
varyfromcountrytocountryandmaysignificantlyaffectthevalueofthestrategiesholdingsandtheirability
to pursue their investment strategies. The effect of any regulatory change on the strategies could be
substantialandadverse.
Page19
TheU.S.CongressrecentlypassedfinancialreformlegislationknownastheDoddFrankWallStreetReform
and Consumer Protection Act (the DoddFrank Act), which includes provisions that impose additional
regulation on advisers registered under the Advisers Act (such as Bridgewater) and that comprehensively
regulatetheOTCderivativesmarketsforthefirsttime.TheimplementationoftheDoddFrankActwilloccur
basedontheadoptionofvariousregulationsandreportstobepreparedbyvariousadministrativeagencies
overaperiodoftime.
TheDoddFrankActincludesnewrequirementstokeeprecordsandtoreportinformationtotheSEC,which
couldinturnbesuppliedtotheFederalReserveBoard,anewfederalsystemicriskoversightcouncil,orother
U.S. governmental agencies or the U.S. Congress. Certain financial institutions deemed to be systemically
relevant, including hedge funds and private equity funds, could be subject to new systemic risk regulation
suchascapital,leverage,orriskbasedrequirementsandregistrationwiththeFederalReserveBoard,among
other things. These requirements and other potential increases in regulation may require a significant
amount of time and attention from the staff of Bridgewater, impose additional costs and could place
restrictionsontheinvestmentorotheroperationsofthestrategiesorBridgewater.
The DoddFrank Act requires that a substantial portion of OTC derivatives must be executed in regulated
markets and submitted for clearing to regulated clearinghouses. OTC trades submitted for clearing will be
subjecttominimuminitialandvariationmarginrequirementssetbytherelevantclearinghouse,andpossibly
otherrestrictions,suchaspositionlimits,aswellaspossibleSECorCFTCmandatedmarginrequirements.
The regulators also have broad discretion to impose margin requirements on noncleared OTC derivatives.
OTCderivativedealerswillalsoberequiredtopostmargintotheclearinghousesthroughwhichtheyclear
theircustomerstradesinsteadofusingsuchmarginintheiroperations,astheycurrentlyareallowedtodo.
Thiswillfurtherincreasethedealerscosts,whichcostsareexpectedtobepassedthroughtoothermarket
participantsintheformofhigherfeesandlessfavorabledealermarks.
The SEC and the CFTC may also require a substantial portion of derivative transactions that are currently
executedonabilateralbasisintheOTC marketstobeexecutedthrougharegulatedsecurities,futures,or
swapexchangeorexecutionfacility.Suchrequirementsmaymakeitmoredifficultandcostlyforinvestment
funds,includingthestrategies,toenterintohighlytailoredorcustomizedtransactions.Theymayalsorender
certain strategies in which the strategies might otherwise engage impossible or so costly that they will no
longerbeeconomicaltoimplement.
The regulation of investing in Europe has been the subject of recent regulatory changes, most notably the
marketsinFinancialInstrumentsDirective,orMiFID,theimplementationofwhichisongoingthroughoutthe
European Union member states. This directive introduced new and more extensive requirements for most
firmsengagedinfinancialservicesandinvestmentintheEuropeanmarkets.Furtherregulatorymeasures,
suchasthoseinvolvingshortsellingandOTCderivativesregulation,havebeenproposedandareexpectedin
relationtotheconductofthefinancialservicesindustry.TheregulationinEuropeisevolving,andsignificant
changesinsuchregulationmayadverselyaffectthestrategiesandtheirinvestments.
Itisimpossibletopredictwhatadditionalinterimorpermanentgovernmentrestrictionsmaybeimposedon
themarketsand/ortheeffectofsuchrestrictionsonthestrategies.
Leverage. The strategies employ leverage in their trading in the markets. Through the use of leverage, a
relativelysmallmovementinthemarketpriceoftradedinstrumentsmayresultinadisproportionatelylarge
profitorloss.Accordingly,thestrategiesmaylosemorethantheirinitialinvestmentsinsuchaninstrument
as a result of a small change in the market price of such an instrument. There is no limitation on the
strategiesabilitytouseleverage.WhileaClientcannotlosemorethanitsinvestmentinafundstrategy,as
previouslystatedabove,separatelymanagedaccountClientscanpotentiallylosemorethantheirinvestment
iftheaccountishighlyleveraged.
Page20
In addition to other forms of leverage, including investments in derivative instruments that are inherently
leveraged,thestrategiesmayborrowfundstobeabletomakeadditionalinvestments,andthestrategiesmay
borrow funds to cover their expenses or make redemption payments. The interest rate on any loan is an
expenseoftheborrowerandwillthereforeaffecttheoperatingresultsofthestrategies.
MarginBorrowings.Tradingsecuritiesonmargin,unliketradinginfutures(whichalsoinvolvesmargin),will
resultininterestchargesand,dependingontheamountoftradingactivity,suchchargescouldbesubstantial.
Forexample,shouldthesecuritiespledgedtobrokerstosecurethestrategiesmarginborrowingsdeclinein
value, the strategies could be subject to margin calls, pursuant to which the strategies must either deposit
additional funds with such brokers or suffer mandatory closeout of the margin borrowings, including
liquidation of the pledged securities to compensate for such decline in value. In the event of a sudden
precipitous drop in the value of the strategies assets, the strategies might not be able to liquidate assets
quickly enough to pay off their margin borrowings and the sale of assets under such circumstances would
adverselyimpactthevalueofthestrategiesassets.
NonControlling Interests. Pursuant to their trading policies, the strategies will generally not seek to take
legal or management control of issuers. Such policy will limit the ability of the strategies to influence the
managementofthe issueror to electa representative tothe issuers boardofdirectors orother governing
body, potentially increasing the risk of such investments. In addition, the management of the issuer or its
shareholdersmay have economicor business interests, which are inconsistent with those ofthe strategies,
andtheymaybeinapositiontotakeactioncontrarytothestrategiesobjectives.
NonPublic Information. From time to time, Bridgewater may come into possession of nonpublic
informationconcerningspecificcompaniesalthoughinternalstructuresareinplacetopreventthereceiptof,
and restrict access to, such information. Under applicable securities laws, this may limit Bridgewaters
flexibility to buy or sell portfolio securities issued by such companies. The strategies investment flexibility
may be constrained as a consequence of Bridgewaters inability to use such information for investment
purposes.
RelianceonBridgewater.Theperformanceofthestrategieswilldepend,amongotherthings,upontheability
ofBridgewatertotradeprofitablyinthemarkets.NoassurancecanbegiventhatBridgewaterwillbeableto
doso.DecisionsmadebyBridgewatermaycausethestrategiestoincurlossesortomissprofitopportunities
onwhichtheymayotherwisehavecapitalized.Bridgewaterhasacompliancepolicythatdetailscontrolsand
proceduresthroughwhichitseekstominimizecomplianceriskstoitsbusiness;however,noassurancescan
begiventhatBridgewaterwillbeabletoidentifyorpreventcompliancerelatedrisks.Clientswillhaveno
rightorpowertoparticipateinthedaytodaymanagementorcontrolofthebusinessofthestrategies,noran
opportunitytoevaluatethespecificstrategiesused,orinvestmentsmade,bythestrategiesorthetermsof
any such investment. When a Client invests through a fund, the funds directors will have the power and
authoritytodirecttheaffairsofthefunds,includingprovidinganyconsentorapprovalonbehalfofthefunds
thatmayberequiredoradvisableunderapplicablelaw.
RiskModels.Bridgewaterhasdevelopedandmaintainsproprietaryriskmodelswhichseektoestimaterisk
and potential for returns based on numerous factors, including observed historical volatilities and
correlations. These models, among other things, forecast relative returns for risk levels, volatilities of, and
correlations among, strategies and investments. These models are also used to evaluate the longterm
approximate annual targeted risk of the investment portfolio of the strategies. The models used by
Bridgewateremployacombinationofhistorical,fundamental,quantitativeandqualitativeinputs,including
historical volatilities and correlations, which Bridgewater believes reasonably approximate certain
characteristics of the strategies investment portfolios. These models may, for a variety of reasons, fail to
accurately predict relative returns for risk levels, volatilities of, and correlations among, strategies and
investments, including because of scarcity of historical data with respect to certain strategies and
Page21
investments,erroneousunderlyingassumptions,andestimatesforcertaindata,orotherdefectsininputsand
themodels,orbecausefutureeventsmaynotnecessarilyfollowhistoricalnorms.
ShortSelling.Thestrategiesmayengageinshortsellingofanyoftheinstrumentstheytrade.Insellingshort,
thestrategiesbeartheriskofanincreaseinthevalueoftheinstrumentsoldshortabovethepriceatwhichit
was sold (price net of transaction costs). Such an increase could lead to a substantial (theoretically
unlimited) loss, as the market price of instruments sold short may increase continuously, although the
strategiesexpecttomitigatesuchlossesbyreplacingtheinstrumentssoldshortbeforethemarketpricehas
increased significantly. Under certain market conditions, the strategies might have difficulty purchasing
instrumentstomeettheirshortsaledeliveryobligations(suchastocompleteadealerrecalloftheunderlying
instrument).Thestrategiesmightalsohavetosellinstrumentstoraisethecapitalnecessarytomeettheir
short sale margin call obligations at a time when fundamental investment considerations would not favor
closingoutsuchshortposition.Shortsalesmaybeusedwiththeintentofhedgingagainsttheriskofdeclines
in the market value of the strategies long portfolio, but there can be no assurance that such hedging
operations will be successful. Many jurisdictions have recently imposed or proposed restrictions and
reporting requirements on short selling which may prevent the strategies from successfully implementing
theirinvestmentstrategiesinvolvingshortselling.
TransactionCosts.Thestrategiesmayengageinahighrateoftradingactivityresultingincorrespondingly
hightransactioncostsbeingbornebythestrategies,includingsubstantialbrokeragecommissions,fees,and
othertransactioncosts,whichcouldhaveanadverseeffectonthestrategiesperformance.
ValueofInvestment.Thevalueofinvestmentsinthestrategiescanfallaswellasrise,resultinginanadverse
effect on the investment. All investments risk the loss of capital. The nature of the investments to be
purchasedandtradedbythestrategiesandtheinvestmenttechniquesandstrategiestobeemployedinan
efforttoincreaseprofitsmayincreasethisrisk.Therecanbenoassurancethatthestrategieswillnotincur
losses.Investmentsinthemarketsmayexperienceextendedperiodsofdrawdownorloss.
Theforegoinglistofriskfactorsdoesnotpurporttobeacompleteenumerationorexplanationofthe
risks involved in an investment in any or all of the strategies. Prospective Clients should read this
entire Form ADV and all accompanying materials provided by Bridgewater and consult with their
own advisers before deciding whether to invest in the strategies. In addition, as the strategies
develop and change over time, an investment in the strategies may be subject to additional and
differentriskfactors.BridgewaterwillpromptlyamendthisBrochureifandwhenanyinformation
regardingitsinvestmentrisksandstrategiesbecomesmateriallyinaccurate.
Page22
Item9:DisciplinaryInformation.
Eileen Murray, one of Bridgewaters Management Committee members, was named as a defendant in a
shareholder derivative action, filed in 2007, alleging securities law violations against Ms. Murray, in her
formerpositionasHeadofTechnologyforMorganStanley,andtwentyotherofficersanddirectorsofMorgan
Stanley, arising from subprime losses. There is a pending motion to dismiss filed on behalf of all the
defendantsincludingMs.Murray.
In2002,theConnecticutDepartmentofBankingfinedBridgewater$2,100forfailingtopaystatenoticefiling
registrationfees.
Page23
Item10:OtherFinancialIndustryActivitiesandAffiliations.
Bridgewater and/or a related person may act as general partner, managing member or other controlling
entity in private funds that may invest in securities, commodities or other investments in which
Bridgewatersclientsmaybesolicitedtoinvest.PleasenotethatItem6andItem12discussBridgewaters
trade aggregation and allocation policy in more detail and discuss how Bridgewater seeks to minimize
conflictsbetweenitsClientseparatelymanagedaccountsandfunds.
Bridgewater is registeredas a Commodity Trading Advisor and a Commodity Pool Operator with the CFTC
andisamemberoftheNationalFuturesAssociation.Bridgewaterdoesnotactinanycapacityasabroker
dealer or a futures commission merchant. Bridgewater does not select or recommend other advisers for
clients.Bridgewaterdoesnothaveanyotherrelationshipsorarrangementsthatarematerialtoitsadvisory
businessortoitsClientsthatarerequiredtobedisclosedherein.
Page24
Item11:CodeofEthics,ParticipationorInterestinClientTransactionsandPersonalTrading.
Bridgewaters Code of Ethics (Code), adopted pursuant to Rule 204A1 under the Advisers Act, confirms
Bridgewaters commitment to the highest ideals of honesty, integrity and openness. Bridgewater
demonstrates this commitment through its measures taken to ensure the confidentiality of Client
information,prohibitionofillegalinsidertradingandmarketmanipulation,theacceptanceofgifts,provision
of political donations and the scrutiny applied to the personal investment and other outside activities of
employees.AllemployeesattendannualCodeofEthicstrainingandcertifyannuallythattheyhavereadand
understandtheCode.
Forexample,BridgewaterrequiresthatanycontributionsBridgewateroritsemployeesmaketocandidates
for public office or political parties be made in compliance with applicable law. Bridgewater will neither
participate in, nor permit its employees to participate in, what are commonly referred to as paytoplay
practices. Bridgewater will not make contributions, payments, or otherwise provide any endorsement or
support to political parties or candidates (including through intermediary organizations such as political
action committees or campaign funds) with the intent of directly or indirectly influencing any investment
management relationship. Bridgewater requires that its employees preclear all state and local political
donations.
AcopyoftheCodeisavailabletoClientsorprospectiveClientsbysubmittingarequesttoBridgewatersChief
ComplianceOfficeratcompliance@bwater.com.
AspectsofBridgewaterspersonaltradingpolicyinclude:
1. Allfulltimeemployeesandcertainconsultants,internsandtemporaryemployees(notjustaccess
persons as defined by the SEC) are required to provide duplicate confirmations of any trade
involvingareportablesecuritytotheChiefComplianceOfficer;
2. A broader definition of reportable security than the SEC definition. For example, reportable
securitiesincludemutualfunds,treasurybonds,and401kholdings.
3. PreclearanceofalltradesthroughBridgewatersautomatedcompliancesystem;
4. A60daybanonshorttermtradingprofits;
5. Anallowablelistofpermissibleinstrumentsandsecuritiesforemployeestotrade;
6. Arequirementforemployeestoholdmostaccountsatanapprovedbroker;and
7. Any principal accounts held and/or trades placed through Bridgewaters account management
processareexemptfromthepersonaltradingrulesandpreclearancerequirementssincetheyare
subjecttothesametradingpoliciesandproceduresandguidelinemonitoringasseparatelymanaged
Clientaccountsandfundinvestments.
InvestmentdecisionsaremadeacrossClientportfoliosbyasystematicinvestmentprocesswithparameters
set according to specific Client targets and guidelines, not by individuals recommending particular
investments to particular Clients. The Compliance department audits the outcome of this process for
consistency across portfolios with similar investment objectives and guidelines. Bridgewater has tight
controls around access to the output of the investment process and very few employees have access to
forwardlookingtradeinformation.
Bridgewaters personal trading policy allows employees to purchase or sell similar securities to those
purchased and soldfor Client accounts. However,allemployees are subjecttorestrictions and monitoring
intendedtoallowreasonablelongterminvestingyetpreventshorttermtradingortheabilitytotradeina
way related to Bridgewaters trading in Client accounts. Bridgewaters Compliance department does
extensive testing for patterns of frontrunning and trading inconsistent with the intent of the policy, using
bothriskbasedandrandomcriteria.
Page25
Bridgewater may recommend to Clients that they buy or sell securities or investment products in which
Bridgewater or a related person has some financial interest. Bridgewater may also buy or sell for itself
securitiesthatitalsorecommendstoClients.BridgewatermayrecommendthatClientsinvestincommingled
fundswhereBridgewaterorarelatedpersoneitheractsasamembermanagerorhasaprincipalinvestment.
The decision to make such recommendation is based solely on the suitability of the investment for the
particular Client. In addition, as stated above and in Item 6, Bridgewaters Account Management and
Compliancedepartmentsreviewsimilarlysituatedaccountsforanydiscrepanciesinperformancetoensure
thatallaccountsaretreatedfairlyandinanunbiasedmanner.
Fromtimetotime,Bridgewaterusescertainsecuritiestoaidinitsowncorporatecashmanagementandrisk
management. These decisions are unrelated to the investment decisions on behalf of Clients. The Clients
investment decisions are based on the output of proprietary investment systems, while the corporate
investmentsarebasedoncashflowneededforoperations.TheAccountManagementDepartmentoversees
the purchases and sales of securities for Client accounts and the Finance Department oversees the
investmentsforthemanagementcompany.
Page26
Item12:BrokeragePractices.
Before Bridgewater begins trading with any brokerdealer, the brokerdealer must satisfy Bridgewaters
minimumcreditrequirementsandminimumstandardsforbackofficecommunication.Oncetradingbegins,
the brokerdealer earns a market share that Bridgewater calculates directly based on the brokerdealers
performance,i.e.thequalityofitsprices.Bridgewatermeasuresthebrokerdealersperformanceintermsof
(a) the tightness of its bid/ask spreads, (b) the fairness of its price quotes, and (c) the degree to which
Bridgewater believes counterparties contribute to market impact. Bridgewater can focus on such price
performance because it does not require other services, such as research or trade ideas, from its broker
dealers.Alongthesamelines,Bridgewatermaintainsanarmslengthpolicy,meaningitsemployeescannot
acceptgiftsorentertainmentworthmorethanademinimusvaluefrombrokersdealers.
DiversificationofbrokerdealerrelationshipsisacornerstoneofBridgewaterstradingapproach.Toachieve
this, Bridgewater uses many counterparties. Bridgewater aims to have a wide variety of counterparties to
limittheamountofinformationanyonecounterpartyreceivesregardingBridgewaterstrading.Bridgewater
alsostrivestoavoidaconcentrationofcreditriskatasmallnumberofcounterparties.Alsonotethatp&lis
neither considered, nor even captured, as a basis for evaluating Bridgewater traders. Rather traders are
evaluated based on their procedural compliance with Bridgewater rules concerning counterparty selection
andtradeexecution,andtheirresearchandanalysistowardimprovingthosepoliciesandprocedures.
Clients generally give discretionary trading authority to Bridgewater to buy or sell securities within the
limitations outlined in the Client investment guidelines. Bridgewater will generally select without
consultation with the Client the clearing brokerdealer used. The decision as to which executing broker
dealerstouseandtheleveloftradingvolumewithsuchbrokerdealersismadeonthebasisofbestexecution
standards and Bridgewaters fiduciary duties to its Clients. Additional considerations include the
creditworthiness of the brokerdealer, the operational capabilities, quality of personnel and accuracy and
quality of reporting. Bridgewaters determination of what are reasonably competitive rates will be based
uponitsknowledgeoftheratespaidandchargedforsimilartransactionsthroughoutthesecuritiesindustry.
In some instances, Clients will pay a minimal transaction cost when no service other than execution is
provided.Dependingonthetypeofsecurity,tradesmaybemadeonanetbasiswheretheClienteitherwill
buysecuritiesdirectlyfromabrokerdealerorwillsellthemtoabrokerdealer.Intheseinstances,therewill
benodirectcommissioncharged,buttheremaybeaspreadwhichwillbetheequivalentofacommission.
SoftDollarPolicy
BridgewaterdoesnotenterintoformalarrangementswithbrokerdealerswhereBridgewaterpaysforand
receivesresearchrelatedorexecutionservicesfromacounterpartyinexchangeforbrokeragecommissions.
AlthoughBridgewaterdoesreceivecertaininformation(e.g.,brokerdealergeneratedresearchreports)and
certainexecutionrelatedservices(e.g.,electronicaccessordirectphonelinestobrokerdealers)thatbenefit
allofitsClients,Bridgewaterdoesnotpayupfortheseservices. Althoughitmayconsiderthereceiptof
such services from a brokerdealer when choosing a broker for execution, as stated above, Bridgewater
primarilydecideswhichbrokerdealerstouseandtheleveloftradingvolumetoprovidesuchbrokerdealer
based on best execution standards and Bridgewaters fiduciary duties to its Clients. Consistent with
Bridgewaters obligation to obtain best execution, Bridgewater may from time to time pay a brokerdealer
commissions(ormarkupsormarkdownswithrespecttocertaintypesofrisklessprincipaltransactions)for
executing Client transactions in excess of that which another brokerdealer may have charged for effecting
thetransactions,consistentwithitsobligationtoobtainbestexecution.Thisisbecausecheapestisntalways
best.
To the extent that the receipt of any such ongoing brokerage or research services by Bridgewater may be
deemedasoftdollararrangement,thearrangementwillfallwithinthesafeharborprovidedbySection28(e)
oftheSecuritiesExchangeActof1934.
Page27
Atleastannually,Bridgewaterconsiderstheamountandnatureofresearchandbrokerageservicesprovided
bybrokerdealers.Brokerdealerssometimessuggestalevelofbusinesstheywouldliketoreceiveinreturn
for the various products and services they provide, but neither Bridgewater nor its Clients are under any
contractualorotherrequirementtoprovidesuchbusiness.BridgewatermayhaveinvestorsorClientswho
arethemselvesserviceprovidersorareaffiliatedwithserviceprovidersusedbyBridgewateroritsfunds.A
brokerdealersaffiliationwithaBridgewaterClientisnotaconsiderationinBridgewatersdeterminationas
towhethertodobusinesswithaparticularbrokerdealer.
Bridgewaterdoesnothaveanydirectedbrokeragearrangements.However,Clientsmaysometimesrequest
that a particular brokerdealer or select group of brokerdealers be used to effect transactions in their
accounts, or may request that certain brokerdealers be restricted from effecting such transactions. In
situationswhereaClientrestrictstheuseofbrokerdealersorcounterparties,theremaybearesultingprice
or execution disadvantage to the Client. More specifically, (i) designated brokerage arrangements or
restrictions may impair Bridgewaters ability to obtain best execution; (ii) the Client may not receive
efficiencies that are available to other Clients who participate in aggregated orders, and (iii) orders placed
withbrokerdealersdesignatedorrestrictedbyClientsmaybeplacedafterBridgewaterfirstplacesitsorders
forClientswhohavenotdesignatedorlimitedtheuseofaparticularbrokerdealer.
TradeAggregationandAllocationPolicy
Bridgewaterseekstoexecutetradesinawaythatminimizestransactionandbookingcostsandthatseeksto
achieve fair treatment for all accounts when allocating individual executions. Bridgewater often executes
ordersinblocks(i.e.,tradesformultipleaccountsgroupedintosingleorders)toachieveexecutionefficiency,
costefficiency,anonymityandtominimizevolatilityinpricesacrossaccounts.WhenBridgewaterencounters
investmentopportunitiesthatareappropriateformorethanoneClientorfund,orwhenanaggregatedorder
isonlypartiallyfilled,Bridgewaterwillallocatetheinvestmentopportunityorapartiallyfilledorderonafair
and equitable basis. In general, Bridgewaters approach is to randomly assign accounts to different orders
throughout the day and to proportionally fill the accounts within each individual order. Bridgewater
determinestherandomaccountorderingpriortotheexecutionofeachorder.Whenallocatingdifferentfills
forasingletrade,Bridgewaterappliesarandomandunbiasedaccountassignmentprocessdesignedtofairly
distributetheexecutionstoeachaccount,includingprincipalaccounts.
CrossTradingPolicy
CrosstransactionsarethoseinwhichoneClientaccountpurchasesorsellssecuritiesagainstanotherClient
account.Giventhepotentialconflictsofinterest,aswellastherestrictionsplacedbyERISA,onengagingin
crosstrades or similar transactions where a Client account that is subject to ERISA is a participant,
Bridgewater generally does not engage on behalf of any of its Clients in crosstrades or other transactions
where the Clients could have differing interests in the same transaction, even where Bridgewater could
achievereducedtransactioncostsforitsclientsbydoingso.Incertaincases,suchasthetradingoffutures,a
brokerdealer may effect a transaction, subject to applicable laws and regulations, for both a Bridgewater
ClientandanotherClientaccountmanagedbyBridgewaterthatisontheoppositesideofthetransaction.The
brokerdealermayreceivecompensationfromtheClientsinvolvedinsuchtransactions.
Errorpolicy
Bridgewater identifies two types of errors. The first type of error is the breach of a Clients guideline
objectives.Intheeventofsucherror,Bridgewaterwillresolvethematterinaccordancewiththetermsofthe
Clientscontract.
Page28
The second type of error is a trade execution error, where, for example, Bridgewaters trading desk sold a
securitythatBridgewaterintendedtopurchase.WhenatradeexecutionerrorresultsinalosstoaClients
portfolioinexcessof$5,000,BridgewaterwillnotifytheClientand/ormakeadjustmentsintheaccountto
restoretheClientsportfoliotothepositionitwouldhavebeenhadtheexecutionerrornotoccurred.
AnerrorwillnotbedeemedtohaveoccurredunlessanduntilaClientsguidelineshavebeenbreachedora
tradeexecutionerrorhasoccurredandaClientsaccountwasfinanciallyimpacted.Bridgewaterconsiders
variationsarisinginitsaccountmanagementprocessthatdonotviolatetheClientsguidelinestobepartof
thenormalcourseofbusiness.
Intheeventofasuspectederror,theChiefComplianceOfficerandtheHeadsofTradeExecutionandAccount
Management,aswellastheManagementCommitteememberstowhomtheyreport,areimmediatelynotified.
ItisultimatelytheresponsibilityofBridgewatersManagementCommitteetoensurethatanyerrorsituation
isresolvedinanappropriatemanner.
Bridgewater makes every effort to correct each error as soon as possible upon its discovery. However,
because thetime required is dependentuponthe nature ofthe error itself, noabsolutetimetable exists. In
mostcases,anerroriscorrectedwithinonedayofitsdiscovery.
TheCorporateCounselandComplianceDepartmentmaintainsawrittenrecordidentifyingallerrorsandthe
ultimateresolutionoftheerrorsinaccordancewiththebooksandrecordsrequirementsofRule204(2)of
theAdvisersAct.
Bridgewaterdoesnotutilizesoftdollararrangementsasameansofresolvinganerror.
Inthecaseofanerrorresultingfromtheactionofanythirdparty,Bridgewaterwillpursueanappropriate
financialremedyontheClientsbehalfand/ornotifytheClient.
Page29
Item13:ReviewofAccounts.
Portfolios are reviewed at different frequencies for different reasons. Daily reviews are performed by the
Account Management Department Analytics subgroup, to confirm that held positions are consistent with
permittedpositions.TheOperationsDepartmentalsomonitorstrades,concentratingontheaccuracyofthird
partyreportingthroughitsdailybroker/counterpartyreconciliationandnewaccountprocedures.
PerformanceonallaccountsiscomputedandreviewedmonthlybySeniorAccountants,Accountingprocess
leadsandAccountingsupervisors.Eachaccountsperformancereturnsarereviewedincomparisontotheir
benchmarksandaccountswithsimilarstyles.
Investors in Bridgewaters funds receive monthly performance and valuation statements directly from the
fundsadministrators.Thestatementscontainthenumberofsharesheldinthefund,monthendpriceand
valuation,monthlycontributionsandredemptions,andmonthlyreturn.
Clients with separately managed accounts receive monthly account statements from both Bridgewater and
their qualified custodians. The custodian provides detailed accounting statements that include holdings,
valuation,andactivity.ClientsreceivemonthlyvaluationandperformancestatementsfromBridgewater.The
valuation statement provides a detailed list of investments, including the quantity held, monthend price,
monthendvaluationandaccruals.Theperformancestatementprovidesthemonthly,quarterly,yeartodate
andinceptiontodateaccountperformanceandifapplicable,thebenchmarkreturnforcomparableperiods.
AllclientsreceiveaquarterlyreportfromBridgewaterwithportfolioandmarketcommentary.
Page30
Item14:ClientReferralsandOtherCompensation.
ThissectionisnotapplicabletoBridgewater.
Page31
Item15:Custody.
BridgewaterisdeemedtohavecustodyofClientassetssinceitservesasamanagingmember,orinasimilar
capacity, to various funds. Each month, fund investors receive statements directly from the fund
administrator.Eachfiscalyear,thefundengagesaPublicCompanyAccountingOversightBoardregistered
independentpublicaccountingfirmtoconductanauditoftheprivateinvestmentfund.Theauditedfinancial
statementsarealsodeliveredtoallfundinvestorswithin120daysoftheendofeachfiscalyear.
Forseparatelymanagedaccounts,Bridgewaterdoesnothavecustodysinceitdoesnothavetheauthorityto
hold,directlyorindirectly,Clientfundsorsecuritiesorhavetheauthoritytoobtainpossessionofthem.Each
month, separately managed account Clients of Bridgewater receive account statements directly from their
qualifiedcustodian,whomaintainstheClientsassets,inadditiontoreceivingastatementfromBridgewater.
Bridgewater encourages Clients to compare the account statement received from its custodian to the
appraisal report received from Bridgewater to ensure transactions are properly recorded.
Page32
Item16:InvestmentDiscretion.
Bridgewater,throughitsinvestmentmanagementagreementswithitsClients,isgenerallygivendiscretion
andauthoritytoinvest,reinvestandmanageaClientsassetsinaccordancewithBridgewaterstrading
systems,methods,models,strategiesandformulasasdescribedtotheClientbyBridgewater;provided,that
Bridgewatercomplieswiththespecificinvestmentguidelinessetforthineachsuchagreement,whichmay
containcertainparametersorrestrictionswithrespecttoBridgewatersinvestmentdiscretionandauthority.
Suchparametersandrestrictionsmayinclude,amongothers,trackingerrororvolatilitytargets,
position/exposurelimits,counterpartyrequirementsandrestrictions,prohibitedinvestments,andapplicable
legalandregulatoryrestrictions.ToenableBridgewatertoexercisefullysuchdiscretion,Bridgewateris
generallyauthorized,astheClientsagentandattorneyinfact,tosignandexecutealldocumentsand
agreementsincluding,butnotlimitedto,futuresaccountagreementsandrelatedacknowledgementsand
disclosures,repurchaseagreementsandswapagreements(alleitherindividuallyorunderanumbrella
agreement),aswellasfundsubscriptionagreementsandredemptionnotices,andtotakeallotheractionthat
Bridgewaterreasonablyconsidersnecessaryoradvisableinordertocarryoutitsduties.AsstatedinItem
15,forseparatelymanagedaccounts,Bridgewaterdoesnothavecustodysinceitdoesnothavetheauthority
tohold,directlyorindirectly,Clientfundsorsecuritiesorhavetheauthoritytoobtainpossessionofthem.
Page33
Item17:VotingClientSecurities.
Proxy Voting Policy: To minimize potential conflicts of interest among Bridgewater and it clients, and to
ensurethatallvotesareproperlyandtimelyplaced,BridgewaterengagesGlass,Lewis&Co.(GlassLewis)
to vote proxies on behalfof its Clients, when authority has been delegated to Bridgewater by the Client. In
accordancewithSECRule206(4)6,Bridgewatergenerallysubscribestotheproxyvotingpolicyadoptedby
GlassLewisbutreservestherighttodirectthatGlassLewisvoteinamannerthatiscontrarytosuchpolicy
whereappropriate,orasspecificallydirectedbyaClientforitsownaccount.
A copy of the Glass Lewis Paper Guidelines, the Bridgewater Proxy Voting Policy, and actual proxy voting
records,ifapplicable,areavailabletoClientsuponrequest.
ClassActionPolicy:Fromtimetotime,Bridgewaterreceivesnoticesregardingclassactionlawsuitsinvolving
securities that are or were held by Clients. As a matter of policy, unless otherwise contractually obligated,
Bridgewater refrains from serving as the lead plaintiff in class action matters and also refrains from
submitting proofs of claim where Bridgewater believes that either the recovery amounts are likely to be
negligible or Bridgewater cannot be assured of confidential treatment of the data submitted in connection
withtheproofofclaim.Asaresult,Bridgewater,inmostcases,doesnotparticipateinclassactionlawsuits.If
Bridgewater does participate in a class action lawsuit and later receives any recovery amounts, those
amountswillbecreditedtotheparticipatingClientsatthetimetherecoveryamountsarereceived.
Page34
Item18:FinancialInformation.
Bridgewater is not aware of having any financial condition that is reasonably likely to impair its ability to
meetcontractualcommitmentstoclients.Bridgewaterhasnotbeensubjecttoabankruptcypetitionwithin
thepast10years.
Page35
Item19:RequirementsforStateRegisteredAdvisers.
Bridgewaterisnotregisteredasaninvestmentadviserwithanystate.ThisItem19isthereforenot
applicable.
Page36

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Bridgewater provides discretionary investment management services to pooled investment vehicles

Electronic Trading. Bridgewatertradeson electronictradingand order routingsystems, which differ from

Failure of Banks, Brokers, Counterparties and Exchanges. In exchangetraded as well as offexchange

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