Ray Dalio said that he will continue to hold his stake in Bridgewater Associates and mentor firm’s investors in years to come.
Ray Dalio, the founder of the world’s largest hedge fund Bridgewater Associates, has stepped down as the co-investment chief in his succession plan. This is the final step for Dalio in fully succeeding the company to a new generation of investors.
Mr. Dalio will continue to remain on the board of Bridgewater Associates which manages over $150 billion in total assets. The billionaire investor has been working on his succession plan over the last year. Earlier this year in February, Bridgewater said that the change of control from Mr. Dalio to the board of directors had been signed. However, some regulatory processes were due before closing the transaction.
Bridgewater veterans Bob Prince and Greg Jensen shall now be taking the charge of the company. Speaking to Bloomberg, Mr. Dalio said:
“This was the natural progression of events; as soon as we were ready, we went ahead. I didn’t want to hold on until I died.”
Five decades ago in 1975, Ray Dalio found Bridgewater Associates in his two-bedroom apartment in New York City. During the 2000s, the firm delivered a solid performance getting a lot of institutional clients and amassing tens of billions of dollars in assets.
Mr. Ray Dalio was always inclined towards building the system through meritocracy and believed that the only way to achieve it was through “radical truthfulness and radical transparency”. “I was just running things. We didn’t have a board or even an idea of how you establish good governance,” added Dalio. However, it was in 2010, when Ray Dalio already decided to work on his succession plan.
What Next for Ray Dalio?
After announcing his succession plan, Ray Dalio said that it means that he can devote more time to philanthropy. Additionally, he will also focus on passing on the lessons he has learned as a lifelong student of the economy.
Furthermore, Mr. Dalio also added that he will continue to hold his minority stake in Bridgewater and mentor investors going ahead. “I feel great about the people and ‘machine’ now in control…I can now visualize it as doing great things for generations without me. That’s as good as it gets,” he added.
“It’s the most beautiful thing to see,” he said. “Bridgewater is my extended family, and now my family is well without me. It’s a joy. They’re strong.”
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