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 News, parent of Bloomberg LP, in discussing the cultures at their companies. 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.
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 (Hedge funds are prevented from providing the public certain performance information becuase of regulatory exemptions). Its Pure Alpha II fund climbed 7.6 percent.
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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