Founder of the world’s largest hedge fund is stepping back as his plans for succession fall into place.
Key Details
- On September 30, Ray Dalio transferred all of his voting rights to the board of directors at Bridgewater Associates and stepped down as co-chief investment officer.
- The move is an important step in Dalio’s goal of creating a legacy. Now the next generation of investors have control of the company he built.
- Dalio announced the transition in a Twitter post. He stated that the company would be controlled by co-CIOs Bob Prince and Greg Jensen and co-CEOs Nir Bar Dea and Mark Bertonlini. The executives will be overseen by a board of directors.
- Bridgewater Associates has $150 billion in assets. Dalio will remain on the board with the title of founder and CIO mentor.
Why it’s news
Ray Dalio is one of the most respected financial figures in the country today—both a visionary with his investments and a dispenser of wisdom and leadership principles.
Dalio’s transition of power marks the end of an era as he no longer has the final say over decisions made at Bridgewater.
The plan for succession wasn’t as simple as it may have seemed. Dalio began plans in 2010, but after more than a decade of trying out potential replacements, Dalio hadn’t found a satisfactory replacement. Only during the last year did plans fall into place.
Last December, the firm announced its board members.
Jensen has already hinted at some changes that may come now that Dalio has stepped down. Some internal tools that the company used to direct employees may be going away.
“The goal is to get people to speak their mind. Some of those tools worked to pull out the truth and some of them didn’t,” Jensen says.
Jensen added that the firm is more likely to invest in technology and people, a move Dalio previously objected to.
Dalio has been ratcheting up his contributions to the world of leadership—with his Principles post offering short and regular insights on business, self-improvement, and decision-making. Plus, he has been a regular commentator on the state of the economy and the stock market.
Bridgewater’s lead fund has returned more than 30% year to date, well above the market average, which is down.
Notable quote
“Today is a very special day for me and Bridgewater Associates because I transitioned my control of Bridgewater to the next generation and I feel great about the people and ‘machine’ now in control. This transition moment is the culmination of a 47-year journey. From my starting Bridgewater w/ 2 people helping me in my 2-bedroom apartment to a multi-generation institution w/ 1,300 people that I’m helping. I can now visualize it doing great things for generations w/ out me. That’s as good as it gets. . . I’m deeply grateful for everything these people have done to bring us to this moment. While it hasn’t been easy over the last 12 years, we made it! Over the last 2 yrs I have watched & mentored them so they could run Bridgewater w/out my interference and they did great. Hopefully until I die, I will continue to be a mentor, an investor, and board member at Bridgewater, because I and they love doing those things together. That’s a dream come true,” Dalio says in a Twitter thread.
