Ray Dalio, the founder of Westport-based Bridgewater Associates, one of the world’s largest hedge fund managers, has sold his remaining stake in the firm — the latest milestone in a long-term transition.
Bridgewater’s recent repurchase of the remaining ownership shares held by “Dalio-related entities” was disclosed in a note to clients sent last week by Bridgewater CEO Nir Bar Dea and Mike McGavick, co-chairman of the firm’s operating board of directors. In the past few years, Dalio and current Bridgewater officials have framed his transfer of control and ownership as steps intended to ensure the long-term viability of the firm, which he founded in 1975.
“This comes after having completed all other aspects of the transition with the transfer of Ray’s control in 2022 and is an ideal culmination of Bridgewater and Ray’s years-long effort of transitioning his ownership stake to the next generation,” Bar Dea and McGavick said in the note. “This transition has been facilitated over time by a combination of current and former employees and several long-term clients all dedicated to building Bridgewater’s next 50 years.”
Bar Dea and McGavick added: “We share our congratulations to Ray — he will always be our cherished founder, is a mentor to many and remains a longstanding client with significant investments in Bridgewater’s strategies. Ray has always described the transition as a ‘dream come true,’ and we’re excited to have made it a reality together.”
In response to an inquiry from CT Insider, a spokesperson for Dalio referred to a piece that he posted this week on social media about the change-over at Bridgewater.
“I am thrilled about it!” Dalio wrote in the post. “I feel that it has been an amazingly wonderful journey that I vividly remember practically every moment of, starting from my creating Bridgewater out of a two-bedroom apartment with a guy I played rugby with, to building it into the largest hedge fund in the world with a great team that grew to about 1,500 people, to making more money for our clients than any other hedge fund — and now, as of July 1, to completing the last step of passing it along to the next generation of great people I really believe have what it takes to make the firm very successful over the next 50 years. What a journey! What joy!”
While Dalio’s influence on Bridgewater endures through the workplace “principles” that he developed, the current leadership team is also molding the firm. In March 2023, Bar Dea announced that the firm would make significant changes that were necessary to “align with our strategic direction.” Bar Dea acknowledged then that, “we need to part ways with great teammates who have been on the journey with us,” but he did not specify how many people would leave. Bloomberg reported that the plan involved cutting about 100 jobs from a workforce of approximately 1,300 people.
Bridgewater officials have declined to comment since March 2023 on the firm’s head count, including the number of employees based at the headquarters, which is located in the Nyala Farms complex, off Interstate 95’s Exit 18, in Westport.
The restructuring also entailed changes to Bridgewater’s investment strategy. Hedge fund managers oversee various types of investments, which can include stocks, bonds, commodities, currencies, derivatives and real estate.
Bridgewater manages approximately $92 billion in assets for about 175 institutional clients and investors worldwide, including public and corporate pension funds, university endowments, charitable foundations, foreign governments and central banks, according to a filing last month to the Securities and Exchange Commission.
The firm has received a significant amount of state financial aid. Through a deal signed in 2016, Bridgewater qualified through the First Five Plus program for a $17 million loan, $5 million in grants and up to $30 million in tax credits in exchange for meeting targets for creating and retaining jobs in the state.
In 2023, Bridgewater ended the agreement. It was unclear if the decision was related to the restructuring. In any case, the firm kept the nearly $11 million in loan forgiveness that it earned and paid back the loan balance, while it also retained the $12 million in tax credits and $5 million in grants that it received. It decided against seeking up to $18 million in additional tax credits.
Bridgewater officials have said that the decision to not pursue more state funding did not reflect a diminishing commitment to Connecticut.
“We’ve called Connecticut home for over four decades, and we have no plans to relocate,” said Sarah Fass, Bridgewater's then-chief human resources officer, in May 2023. “We made an agreement with the state to enter the program in 2016, and like many companies, our workforce and workplace has evolved significantly since that time. Even with these changes, we remain a strong supporter, contributor and advocate for Connecticut.”
Bridgewater has long faced scrutiny because of its size and the celebrity of it founder. Dalio, who turns 76 on Aug. 8 and is a long-time Greenwich resident, has several million followers on social media. As of Thursday, his net worth was approximately $16 billion, ranking No. 150 worldwide, according to the Bloomberg Billionaires Index.
While many people admire Dalio and his principles, the firm’s culture has also garnered criticism. “The Fund,” a book written by New York Times journalist Rob Copeland that was published in 2023, alleged that the principles, “encouraged a culture of paranoia and backstabbing.” Bridgewater officials condemned the book, asserting that its narrative was, “ridiculous and couldn’t be any further from the truth.”