Ray Dalio is reportedly agitating to return to Bridgewater Associates after leaving the Westport hedge fund less than year after he retired.
According to a New York Times report sourced from “five people with knowledge of the agreement,” the 74-year-old Dalio is floating the idea of starting a new fund within Bridgewater designed to boost the firm”™s investment returns. Bridgewater manages $125 billion, but its main fund has been in decline since Dalio”™s retirement.
However, the prospect of Dalio”™s return is not being welcomed by Bridgewater”™s hierarchy, with CEO Nir Bar Dea (who was appointed by Dalio as his successor) joining senior executives and board members with threats to quit if Dalio returns. The argument against Dalio”™s proposal was that he would use the proposed fund to reassert control over the company.
Dalio claimed in a statement that he was not seeking “to run” Bridgewater with his proposed fund, adding that tension within Bridgewater was nothing unusual.
“We have fought about many things all the while still loving each other ”” like an Italian family,” Dalio said.
However, the Times also noted Dalio threatened the company during his retirement agreement negotiations by stating, “Take me out and get what you deserve.”
Dalio is still a director at Bridgewater. According to the Times’ unidentified sources, Dalio’s retirement contract provides him with the option to retake control of the hedge fund if its financial performance deteriorates.
Photo of Ray Dalio via World Economic Forum / Flickr Creative Commons
