Merit idea
Dalio was a former commodities broker and trader when he started Bridgewater from his apartment in New York City, in 1975. The company’s outstanding performance in 2000s has seen it amass tens to billions in assets and acquire many of the most important organizations as clients.
Bridgewater, Connecticut’s cult-like organization, is also well-known for its secrecy.
Dalio began with humble beginnings. He has since built Bridgewater into the center for Wall Street’s power. His name is:AP
This place was certainly extraordinary. Dalio wanted to create the “idea of merit” and believed that the best way to achieve it was through “radical credibility and extreme transparency”. Open debate was encouraged. Baseball cards rated employees based on their credibility. Meetings were also recorded.
Dalio recalls how, more than a decade ago, he set the Bridgewater succession in motion. “I was just running them,” he said. “We had no board or even an idea of how to establish good governance.”
revolving door
He was not prepared for the challenges. Seven different people held the title of co-CEO or sole for the next ten years.
Bridgewater’s new ranks of command & government finally came together in December last year. The company announced its board of directors in December. When David McCormick quit to take up a spot in the US Senate in January, Bar-Dia and Marc Bertolini were appointed his co-CEOs.
“It was a challenge along the way because Ray had strong opinions about how things were going,” said Greg Jensen, who joined Bridgewater as an intern in 1996, served as CEO in early 2010 and is now CIO with Bob Prince.
Bridgewater, while many of its competitors saw record profits as the pandemic spread to 2020, has been lagging behind. This has prompted a revision in the company’s strategy. His name is:Bloomberg
Poor performance can often be the catalyst for improvement in a hedge fund. Bridgewater’s Pure Alpha saw a drop of nearly 13 per cent in 2020, while competitors Brevan Howard Asset Management or Rokos Capital Management posted record profits. This was in addition of the poor returns experienced in the 2000s.
Change Hints
The results were shocking for a company that is so confident in its ability to attract the best investment talent. Jensen said Bridgewater discovered that many of her methods had been limiting creativity and collaboration and not bringing out the best ideas.
“The goal is to get people to express their opinions,” he said. “Some of these tools helped to extract truth while some didn’t.”
In an effort to measure employee input, baseball cards, such as those used to represent the game of baseball, do not attempt to predict and capture every quality or characteristic. Jensen stated that the current focus is more narrowed and practical.
He also hinted that more changes were on the horizon. Now that control rests with the board, Bridgewater will likely invest more aggressively in technology and people — even if Dalio objects, he said.
‘beautiful thing’
Dalio exudes a calm and contented aura when speaking to people.
This succession allows him to devote more of his time to charity work and share the lessons he’s learned as a long-term student of economics. He stated that he doesn’t plan to sell Bridgewater’s minority stake, and that he looks forward to helping the company’s shareholders for many more years.
Laden
The Dalio Group on Wall Street had to give up. Blackstone, which is the world’s largest alternative asset management company, has a 75-year-old Steve Schwarzman as its Chairman and CEO.
Henry Kravis, 78 and George Roberts 79 remain co-chairs of KKR & Co. Carlyle Group Inc. Bill Conway, the co-founder, was recently appointed interim CEO after Kewsong Lee, 57, was fired.
Dalio won’t quit his job if he doesn’t like being boss.
He said, “It’s one of the most beautiful things you can see.” “Bridgewater is my extended family, and now my family is fine without me. It is a great joy. They are strong.”
Bloomberg
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Originally published at Brisbane News Station
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