-The world’s largest hedge fund manager becomes the third investment management WFOE in China
-The Shanghai-based platform was capitalized at nearly USD8m, well above the more typical level of capital
-The expectation is for Bridgewater to move quickly and take full advantage of fixed income market reforms

Update: With absolutely no fanfare, the world’s largest hedge fund manager – Bridgewater Associates – received approval on March 7th to establish the third investment management WFOE in China. The move here stands in stark contrast to the belligerently loud claims among Ray Dalio’s hedge fund contemporaries, all of whom are now crowded like sardines into the same China short trade. But this comparison is nothing more than a sideshow. What all should consider are the strategies Bridgewater may be planning matched against ongoing market reforms in China. Undertake that exercise and you can reach a reasonable conclusion as to what the near-term future holds for Bridgewater’s operations in China.

To start, we need to address how Bridgewater was able to receive a WFOE approval if applications for new “investment” related businesses had been suspended. On this front, nothing has changed, although Z-Ben Advisors now believes the…