Ray Dalio hands over the reins to Bridgewater

Ray Dalio, the billionaire founder of hedge fund Bridgewater Associates, has relinquished control of the company, ending a protracted power transition that would define the industry’s succession woes.

The 73-year-old, who until last month was one of three co-chief investment officers at the firm and sat on the investment committee, has transferred all of his voting rights to the board, people familiar with the details said. Dalio remains on the board as founder and CIO mentor.

“Bridgewater’s transition from Ray is complete!” read an email to employees sent Tuesday by co-CEOs Nir Bar Dea and Mark Bertolini. “This process has not been easy and we have not always agreed, but together we have now accomplished what very few companies or founders have achieved, namely the transformation from a founder-run boutique into an enduring institution that is successfully passed on to the next generation .”

Dalio founded Bridgewater in 1975 and grew it into the world’s largest hedge fund with assets of $151 billion. The company became known for both its culture of “radical transparency” and its investments, with employees encouraged to openly challenge one another and conversations often recorded. The approach drew criticism from outsiders, while some employees struggled to fit into the way it worked.

Bridgewater’s lengthy succession process has involved a number of different people in the CEO role.

Planning for future leadership began in earnest more than a decade ago when Greg Jensen and Eileen Murray, a former Morgan Stanley executive who was hired in 2011, co-led the company.

Jensen retired from the role of co-CEO in 2016 after reportedly clashing with Dalio, but remained with the company as co-CIO.

Dalio brought in Jon Rubinstein, a senior Apple executive, to fill Jensen’s role alongside Murray, but he was deemed “culturally unsuitable” for the company and did the job for less than a year. Rubinstein’s role was given to David McCormick, a former Army Ranger and insurance executive.

Meanwhile, Murray left the company in 2019 and subsequently sued the firm over its alleged refusal to pay her deferred compensation after disclosing a gender discrimination dispute. The two sides later settled the case. McCormick stayed on as sole CEO, but resigned in January to run for the US Senate, with Dalio bringing in the current co-CEOs.

Bridgewater’s investments are still in the hands of Dalio’s top lieutenants, Jensen and Bob Prince. As the company struggled with the market crisis caused by the coronavirus, it has delivered strong performance this year, with its Pure Alpha fund up 34.55 percent in the year to the end of September.

Dalio acknowledged in a LinkedIn post published on Tuesday that the handover process “wasn’t easy,” but said he intends to be an investor, board member and mentor until his death.

https://www.ft.com/content/a76f7683-6364-4d75-b657-dcb359e733f1 Ray Dalio hands over the reins to Bridgewater

Adam Bradshaw

TheHitc is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@thehitc.com. The content will be deleted within 24 hours.

Related Articles

Back to top button