Tags: Bridgewater | Connecticut | aid | Dalio

Bridgewater, Billionaire-Led Hedge Fund, Gets Connecticut Taxpayer Aid

Bridgewater, Billionaire-Led Hedge Fund, Gets Connecticut Taxpayer Aid
Billionaire Ray Dalio, whose Bridgewater Associates, the world’s largest hedge fund, will receive $22 million in aid from Connecticut, which has been working to keep businesses from leaving the state.

Friday, 27 May 2016 06:13 PM

Bridgewater Associates LP, the world’s largest hedge fund, will receive $22 million in aid from Connecticut, which has been working to keep businesses from leaving the state.

The firm, led by billionaire Ray Dalio, was approved for a $5 million grant and a $17 million loan to expand in Westport, Wilton and Norwalk, according to minutes of the state bond commission’s meeting Friday. The loan would be forgiven if Bridgewater, which manages about $150 billion, retains some 1,400 jobs and creates 750 new ones.

The measure drew a rebuke from Comptroller Kevin Lembo, who said Connecticut can’t afford to be “picking winners and losers” when its stagnant economy led to two credit downgrades this month. Bridgewater is receiving the assistance as hedge funds come under scrutiny from clients, including public pension funds, for charging hefty fees while delivering lackluster results.

Connecticut is the wealthiest U.S. state, yet has had difficulty balancing budgets as its finance-based economy struggles to rebound from the recession. Democratic Governor Dannel Malloy has pushed through tax increases to fill the shortfalls, though now warns of a “new economic reality” that must be addressed with spending cuts. 

The state has resorted to financial incentives to keep companies within its borders. It suffered a blow earlier this year when General Electric Co. announced it would move its headquarters to Boston, after residing in Fairfield since 1974. That came even after Malloy pulled back on a plan to raise business levies that led GE to look elsewhere.

Other financial companies have received loans like the one approved for Bridgewater. In October 2014, Connecticut extended through 2021 an agreement with UBS AG that gave the bank a $20 million loan that doesn’t have to be repaid if it keeps at least 2,000 employees in-state.

Bridgewater was founded by Dalio in 1975 from his two-bedroom apartment. Its Pure Alpha fund tumbled 6.7 percent in the first quarter of this year, according to a person familiar with the returns.

Dalio earned about $1.4 billion last year, according to Institutional Investor’s Alpha’s 2016 Rich List. He’s worth about $14.1 billion, ranking him the 60th richest person in the world, according to the Bloomberg Billionaires Index.  

© Copyright 2019 Bloomberg News. All rights reserved.

   
1Like our page
2Share
StreetTalk
Billionaire Ray Dalio's Bridgewater Associates, the world’s largest hedge fund, will receive $22 million in aid from Connecticut, which has been working to keep businesses from leaving the state.
Bridgewater, Connecticut, aid, Dalio
362
2016-13-27
Friday, 27 May 2016 06:13 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved