Ray Dalio relinquishes control of Bridgewater as part of the succession plan

Ray Dalio relinquishes control of Bridgewater as part of the succession plan

Written by Carolina Mandel and Sophia Herbst Bayliss

(Reuters) – Ray Dalio, the billionaire investor who founded Bridgewater Associates to become one of the world’s largest hedge funds, said it has handed control of the $150 billion company to a new generation of investors.

The company said Dalio has transferred his largest stake to the board of directors but remains a “meaningful” owner of the fund. He has resigned as one of three co-chiefs, although he will continue to be a lead investment advisor.

“Control of the company now rests with our operating board. There is nothing left to do in Ray’s transition. It has been done,” co-CEOs Nir Bar Dea and Mark Bertolini said in a statement.

Dalio will retain his seat on the Bridgewater board of directors along with the other 12 members.

“Hopefully until I die, I’ll continue to be a mentor, investor, and board member at Bridgewater, because I love doing these things together,” Dalio wrote on Twitter.

The 73-year-old billionaire resigned as Bridgewater’s CEO in 2017 and chairman at the end of 2021, after which a prolific hedge fund manager has served in his current position with a focus on steering the committee that oversees the company’s investment strategies.

The latest step in the succession plan comes in a good year for Bridgewater’s flagship Pure Alpha fund — it has risen nearly 35% and averaged 11.32% annually in the first three quarters of this year since it launched in 1991, according to a source familiar with the fund.

The move complements what were transitional years ago at a time when some of his peers, including Carl Icahn, converted once-large hedge funds into so-called family offices where they solely managed the founder’s family fortune.

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Dalio, known for Bridgewater’s rebellious culture of “radical transparency” as he is due to his ability to decipher market movements and generate significant returns, wanted the company to outlive him and spent years trying to find the right mix of investors and CEOs to lead the company he founded in 1975.

Bridgewater’s latest big management change came in January when it appointed Bertolini and Bar Dea to replace David McCormick (NYSE:) as CEO as the former US Treasury official sought to run for public office.

Dalio’s views on the economy have been closely watched by retail investors and financiers throughout his career.

“I have great respect for Ray,” said Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:), the largest US bank. “He’s a great thinker and an outstanding investor,” Damon said.

Dalio is hugely popular in China, where his company became the first foreign hedge fund last year, even as Washington and Beijing were in the midst of a heated audit dispute.

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