Tags: Bridgewater | Dalio | hedge fund | culture

Bridgewater's Dalio Says Hedge Fund Seeks 'Radical Truth'

Monday, 22 Sep 2014 04:42 PM

Ray Dalio, who runs the $160 billion Bridgewater Associates LP, said he’s seeking to encourage a culture of “radical truth and radical transparency” by recording everything inside the hedge-fund firm.

“I didn’t want to have spin,” Dalio said at the Bloomberg Markets Most Influential Summit in New York. “We tape everything at the company for everyone to see.”

Dalio was joined by former New York mayor Michael Bloomberg, the founder and majority owner of Bloomberg LP, parent of Bloomberg News, in discussing the corporate cultures. Since Dalio, 65, created Bridgewater in 1975 in a spare bedroom in his New York apartment, the billionaire has built the firm into the industry’s largest hedge-fund firm with a distinct workplace and a research-driven investing process.

Bridgewater employees, Dalio included, are required to publicly talk about their and their colleagues’ mistakes and weaknesses as a means to improvement. Conversations are either audio or videotaped so that employees can make their own assessments.

Dalio promotes the Bridgewater culture through his ‘Principles,’ a 123-page presentation available on the company website that includes personal anecdotes such as being inspired by The Beatles to try meditation and maxims such as “Don’t try to please everyone,” and “Use checklists.”

Asked to respond to criticism that Bridgewater is a cultish workplace, Dalio said his firm “is the opposite of a cult, everybody being able to have their own points of view and being able to work through them with thoughtful disagreement.”

Outperforming Peers

The Westport, Connecticut-based firm has outperformed peers this year as many macro fund managers are barely breaking even or losing money. The Bridgewater Pure Alpha Fund returned 5 percent this year through August, according to a person with knowledge of the matter who asked not to be identified because the information is private. Its Pure Alpha II fund climbed 7.6 percent in the first eight months of the year after rising 5.3 percent in 2013.

Dalio said he wouldn’t sell shares in his firm to the public.

“It would be a nightmare,” he said. “I have enough money.”

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Ray Dalio, who runs the $160 billion Bridgewater Associates LP, said he's seeking to encourage a culture of "radical truth and radical transparency" by recording everything inside the hedge-fund firm.
Bridgewater, Dalio, hedge fund, culture
341
2014-42-22
Monday, 22 Sep 2014 04:42 PM
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