Ray Dalio, the outspoken hedge fund manager whose profile rose after he predicted the 2008 financial crisis, is relinquishing control of Bridgewater Associates, the firm he founded out of his two-bedroom apartment in 1975. In a long-planned transition, the co-chief executives Nir Bar Dea and Mark Bertolini will run Bridgewater, one of the world’s largest hedge funds, with $150 billion in managed assets.
Mr. Dalio will continue to serve on Bridgewater’s board, publish research and adopt the title of “C.I.O. mentor,” the company said.
Mr. Dalio ushered in the era of enormous hedge funds. By the time Bridgewater started its signature Pure Alpha fund in 1991, most rivals had been relatively small, focused on the stock market and managing the money of the ultrarich. Mr. Dalio, whose expertise was in currency trading, sought business from pension funds, which had huge piles of money to invest and were looking for exposure outside the stock market.
At Bridgewater, Mr. Dalio enforced “radical transparency,” as he called it, in which employees were encouraged to be brutally honest with one another. To some, Bridgewater’s success made Mr. Dalio a management guru. His best-selling 2017 book, “Principles: Life and Work,” lays out the rules for achieving success and “radical transparency.”
“Ray is a rare breed,” Anthony Scaramucci, a fellow hedge fund manager whose annual hedge fund conference has featured Mr. Dalio, told the DealBook newsletter. “You don’t often see a skilled hedge fund manager who can both build an enduring company and have the humility to let it go.”
Mr. Dalio is leaving on top, and on bottom. After years of average performance, Pure Alpha is up nearly 35 percent this year, far outperforming the overall market. But Bridgewater’s other fund, which is called All Weather because it’s supposed to produce stable returns no matter the market, is down 27 percent in 2022.
Source: NY Times