Dalio Steps Away Completely!

On August 1, the 75-year-old Ray Dalio reflected on his 50-year journey running Bridgewater Associates in a social media post, revisiting his principles on life, work, and investing. He said: "From starting Bridgewater with a football-playing buddy in a two-bedroom apartment, to building it into the world’s largest hedge fund with an exceptional team of about 1,500 people, to making more money for our clients than any other hedge fund—to now completing the final step of passing the Bridgewater baton to the next generation, I’m confident they are fully capable of sustaining the company’s excellence and vibrancy for another 50 years."

This equity transfer marks the completion of Dalio’s succession plan, initiated in 2011 and spanning over 13 years. Dalio had previously stepped down as CEO, co-CIO, and board chairman while gradually reducing his stake, yet remained actively involved in the firm, "making periodic demands and complaints."

His full exit from ownership and the board will simplify Bridgewater’s governance structure, allowing the legendary hedge fund to refocus on investment performance. Bridgewater CEO Nir Bar Dea and co-chairman Mike McGavick wrote to investors, calling Dalio’s final share sale the "ideal endpoint" of the ownership transition.

Per media reports, Bridgewater first repurchased Dalio’s remaining shares, then issued new equity to Brunei Investment Agency (BIA). The multibillion-dollar deal gives the Southeast Asian sovereign wealth fund nearly 20% ownership, making it one of Bridgewater’s largest shareholders. BIA was already a long-term investor in Bridgewater’s funds, but this move converted its fund investments into direct equity. Despite BIA’s sizable stake, co-CIO Bob Prince retains a larger ownership share.

Bridgewater’s assets under management have shrunk significantly in recent years, from $168 billion at end-2019 to $92.1 billion by end-2024. However, its flagship Pure Alpha fund has improved after capping its size, delivering an 11.3% return in 2024 and surging 17% in H1 2025.

Recently, Dalio has repeatedly warned about U.S. debt, likening the worsening crisis to an impending "economic heart attack." He stressed that U.S. spending exceeds income by 40%, with debt interest payments severely squeezing purchasing power—like plaque constricting blood flow in arteries. Dalio cautioned that the U.S. is nearing a tipping point where it must issue new debt just to pay interest on existing debt, a cycle that could trigger financial shocks and systemic collapse.