Billionaire investor Ray Dalio's flagship hedge fund posted gains of 32% in the first half of 2022 even in a broad market decline

According to sources familiar with the fund's performance, the flagship fund had a 32% return through the first half of the year.

The world's largest hedge fund is managed by Bridgewater.

The performance of Pure Alpha II is vastly different from the market as a whole. The first six months of the year have been the worst for the S&P 500 in 50 years.

The Federal Reserve's interest rate hikes, aimed at keeping inflation in check, made it possible for anyone on the right side of the market to make big gains.

The Pure Alpha II fund made gains in more than half of the markets it traded in. It made money in a number of sectors.

Since 1991, the Pure Alpha II fund has returned an average of 11.4% to investors.

Insider sent a request for comment that was not responded to by the company.