The world’s largest hedge fund says it is ‘bloated’

Bridgewater Companions – the world’s biggest hedge fund Company, in assets under management with $150 billion and 1,700 staffs – declares it is “bloated” and will increase competences of its non-investment groups. Ray Dalio, the millionaire organiser of the world’s largest hedge fund Company, Bridgewater Associates, be keen on to say that one of his company’s core working ideologies is “radical transparency” while it comes to exposure employee complaints and worries.

Largest hedge fund Company

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The firm made the declaration in a letter to customers sent on Thursday, which was acquired by Business Insider.

Bridgewater Hedge Fund Company leadership team said its employees in a town hall Thursday that it will be employing layoffs and renovations of its administrative structure and technologies in its Recruiting, Technology, Services, and Management Services group.

The group writes that this change is “coming at a time while our basics are actual strong” but that quick growth of its non-investment parts in the previous five years has resulted in areas that “come to be bloated, incompetent, and executive.”

The team inscribes, “The original management leadership is at present digging into the parts of incompetence to progress them”. “Obviously that will comprise some important changes to persons, procedures, and skills.”

The leadership group notes that under usual situations they would not be reporting their customers of this change, but are deed so for the reason that we have in recent times experienced partial reporting in the media” and need to deliver the real story. This is an orientation to previous reports this year from the New York Times and the Wall Street Journal, which Bridgewater founder Ray Dalio openly expressed matters with.

Below you can read the complete letter. It’s signed by co-CIO Bob Prince, Dalio, co-CEO Eileen Murray, co-CIO Greg Jensen, co-CEO Jon Rubinstein and President David McCormick.

“Dear -,

Today conference with staffs in a town hall, we conveyed to the company that we will be showing a makeover to progress competences at Bridgewater Hedge Fund Company, particularly in the non-investment areas for example Recruiting, Technology, Management Services and Facilities.

In the previous, we made these kinds of internal changes in private and wouldn’t have worried telling you about them as you won’t be openly affected. Though, we obvious to bring them to your consideration because we have in recent times experienced partial reporting in the media about what is in at Bridgewater, so we need to provide you the real story.

To be conspicuous, this overhaul is coming at a time while our fundamentals are actual strong: Our investment procedure is improved than ever, our financial situation is rock solid, our main employees who constructed the firm wouldn’t need to work somewhere else, and our customers remain assured in us. We are creating these changes as a portion of the continuing process of constant improvement that has been the important to our accomplishment over the previous 40 years.


As you discern, about a period ago, our assets under organization were increasing speedily and Bridgewater’s management confronted a choice: to remain a boutique or come to be an organization. To institutionalize Bridgewater destined construction out areas of the company that a boutique doesn’t have or only discreetly has, such as Technology, Security, HR, Legal, Facilities, etc. Building out those parts essential us to hire numerous people.

Bridgewater Hedge Fund Company

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As a consequence, we grew intensely. In 2003 Bridgewater had 150 workers; in 2011, while we began our management evolution, we had 1,100; at present we have 1,700. Around 70 percent of this growing in headcount was in our non-investment parts. As one could imagine, some of these areas come to be inefficient, bloated, and bureaucratic.

To compact with this condition, former this year, we rearranged our management group to help push through required improvements. These changes comprised Ray provisionally stepping back into active management of the organization as co-CEO, joining the current senior management of Eileen Murray and David McCormick. We also conveyed in Jon Rubinstein as a co-CEO and prepared some other management variations. An extra profit of this shift was that it permitted Greg Jensen to give his full devotion to his character as co-CIO along with Ray and Bob Prince. These changes in supervision roles were reliable with our plan to understand how to best change the leadership of the company over 10 years.

The fresh management leadership is at present excavating into the areas of incompetence to progress them. Obviously that will include some important changes to persons, processes, and skills. As revealed, the huge majority of this revamp will be in the non-investment zones that have seen the greatest growth to make them more operative in supporting our investment and customer service parts.

As at all times our evolutionary procedure will be unsatisfactory, transparent and iterative, and it will make us more effectual.

What is of supreme significance is our penetrating to the culture that has ran to our outstanding results. It is greatest brief in the following sentence: “We need meaningful work and meaningful relations through essential truth and essential transparency”. Clearly bringing difficulties to the surface and concerning them as unbearable might lead some people to incorrectly arrange that we have more difficulties than organizations that don’t clearly bring problems to the surface. Our workers and our customers understand that this change is essential to our accomplishment. It is also through this fundamental truth and transparency that they have well-read to trust our honesty as well as our skills.

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