Oct 4, 2022 - Economy

Ray Dalio relinquishes control of world's biggest hedge fund

man in suit wearing glasses sitting on a couch on a stage with 92NY signage behind him

Ray Dalio at 92NY on September 19, 2022 in New York City. Photo by Taylor Hill/Getty Images

Ray Dalio, founder of the biggest hedge fund ($150 billion) in the world, is giving up control of his company after nearly 50 years, Hope writes.

Why it matters: From creating the firm's infamous feedback culture, to growing its funds' historical performance and size, Dalio helped define Wall Street's aspirational mystique for multiple generations.

Driving the news: Bridgewater Associates Tuesday announced the conclusion of a succession and transition plan, 12 years in the making.

  • Dalio, 73, transferred all of his voting rights (at one point 95%) to the board at the end of September and stepped down as one of three co-chief investment officers.
  • He will keep his seat on the board and assume "founder and CIO mentor" as his new title.

The big picture: Succession planning and letting go are hard.

  • Dalio stepped down as co-CEO in 2017 and chairman at the end of last year.
  • He's among the first in his cohort of fund managers to relinquish control. Blackstone co-founder Steve Schwarzman, 75, remains chairman and CEO. KKR & Co. founders Henry Kravis, 78, and George Roberts, 79, are still co-chair, Bloomberg noted.

What to watch: Bridgewater will likely invest more aggressively in talent and technology, whereas he'll focus now on philanthropy and mentorship, Dalio told Bloomberg.

  • “I didn’t want to hold on until I died," he said.
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