Bridgewater Associates' Pure Alpha II Fund, a macro strategy within the world's largest hedge fund, declined 2.5 percent during the first half of this year, according to a person with knowledge of the matter. The fund's decline compares with a gain of 3.7 percent for the HFRI Fund Weighted Composite Index, which tracks the broader hedge-fund industry. In the 12 months through June, the Pure Alpha II fund gained 13.3 percent, the person said, asking not to be named discussing performance numbers at the hedge fund. That 12-month number is more significant to pension funds that invest in hedge funds...