A Bridgewater spokesman declined to comment for this story. On Tuesday, the firm said Eileen Murray, co-chief executive officer, was leaving. David McCormick will become sole CEO. Since Dalio ceded day-to-day management in 2011, five people have held the title of CEO or co-CEO.
Bridgewater’s firmwide assets now stand at about $160 billion, including hedge funds and lower-fee products, a figure that’s stayed roughly constant for most of the decade. As founder of the world’s largest hedge fund, Dalio has an aura akin to that of Warren Buffett or Bill Gross, the one-time bond king, at the height of his fame. Since the publication of Dalio’s book, he’s been mentioned more than 9,000 times in the media, according to a Nexis search.
While Dalio never tells anyone other than clients how his portfolio is positioned, Bridgewater’s moves in the markets -- real or perceived -- are routinely parsed by traders hunting for any edge. Investors eagerly await his latest pronouncements on everything from China’s Communist Party to U.S. President Donald Trump.
Unlike other big hedge fund managers, Dalio talks up his money-making ability in public settings -- on LinkedIn, in TED Talks -- where he speaks of the company’s “unique success” and likens employees to “intellectual Navy SEALs.”
Bridgewater has about 200 people overseeing client relationships, one for every 1.7 investors, and acts as a money-management consultant that will analyze the riskiness of an entire portfolio. It also publishes daily musings on markets or the economy that investment heads say helps them look smart when they appear before their boards.
This year, Bridgewater’s losses were fueled by bearish wagers on global interest rates, particularly in Europe and the U.K., according to people familiar with the matter. The firm is also bullish on global equities, and expects to remain so.
Pure Alpha II’s decline comes as many of its macro peers have made money this year. Element returned about 8.4% through October and Greg Coffey’s Kirkoswald Global Macro Fund climbed almost 29% in that period. Andrew Law’s Caxton Associates has jumped about 17%.
Yet for many investors, Dalio’s reputation is undimmed -- even for people like Michael Rosen, chief investment officer for Angeles Investment Advisors, which manages money for endowments and foundations. While Rosen dropped Bridgewater several years ago because he doesn’t think a macro strategy makes sense in the current environment, it didn’t affect his view of the founder.
“I think Ray is a genius,” said Rosen. “What he built is extraordinary and I think his legacy is secure.”
This article was provided by Bloomberg News.