Ray Dalio palms over reins at Bridgewater

Ray Dalio, the billionaire founding father of hedge fund Bridgewater Associates, has given up management of the agency, ending a drawn-out transition of energy that had come to outline the trade’s succession issues.

The 73-year-old, who till final month was certainly one of three co-chief funding officers on the agency and sat on its funding committee, has transferred all of his voting rights to the board of administrators, mentioned folks aware of the small print. Dalio will stay on the board as founder and CIO mentor.

“The transition of Bridgewater from Ray is completed!” mentioned an electronic mail to workers despatched on Tuesday by co-chief executives Nir Bar Dea and Mark Bertolini. “This course of wasn’t simple and we didn’t all the time agree, however collectively, we’ve now completed one thing that only a few corporations or founders have achieved, shifting from being a founder-led boutique to being an everlasting establishment led efficiently by the subsequent era.”

Dalio based Bridgewater in 1975 and constructed it into the world’s largest hedge fund with $151bn in belongings. The agency turned identified for its tradition of “radical transparency” as a lot as for its investing, with workers inspired to brazenly problem one another and conversations typically taped. The method drew criticism from outsiders, whereas some workers discovered it tough to slot in with its approach of working.

The drawn-out succession course of at Bridgewater has concerned a collection of various folks within the CEO position.

Planning for the long run management started in earnest greater than a decade in the past when Greg Jensen and Eileen Murray, a former Morgan Stanley government who was employed in 2011, co-led the agency.

Jensen moved out of the co-CEO position in 2016, after reportedly clashing with Dalio, however remained on the agency as co-CIO.

Dalio introduced in Jon Rubinstein, a senior Apple government, to take Jensen’s position alongside Murray however he was deemed to not be a “cultural match” for the agency and did the job for lower than a 12 months. Rubinstein’s position was given to David McCormick, a former military ranger and insurance coverage government.

In the meantime, Murray left in 2019 and subsequently sued the agency over its alleged refusal to pay her deferred compensation after she disclosed a gender discrimination dispute. The 2 sides later settled the case. McCormick was left as the only real CEO however resigned in January to run for the US Senate with Dalio bringing within the present co-CEOs.

Bridgewater’s investments are nonetheless within the palms of Dalio’s high lieutenants, Jensen and Bob Prince. Whereas the agency struggled within the coronavirus-induced market rout, it has delivered robust efficiency this 12 months with its Pure Alpha fund up 34.55 per cent within the 12 months to the top of September.

Dalio acknowledged in a LinkedIn submit printed on Tuesday that the handover course of “hasn’t been simple” however mentioned he intends to be an investor, board member and mentor till the day he dies.