Ray Dalio Says He's Ready to Give Away Bridgewater's Secrets
By Erik Schatzker
September 17, 2017, 4:00 PM CDT
(editorial note by JJP: It's going to be very interesting to see .... what exactly Ray Dalio actually
gives to other companies / us....... He is a very iconoclastic individual)
Of all the hedge fund world’s secrets, few are more closely guarded than the inner workings of Bridgewater Associates Inc. Now, founder Ray Dalio plans to share his management system and corporate culture with the world.
“We’re about to take the algorithms we have, and we’re going to give them to others,” Dalio said in an interview with Bloomberg Television. “We’re figuring out how to make that fit in a number of other companies, to just pass it along.”
It’s a radical turn for a radical firm. The billionaire leader of the world’s largest hedge fund has developed one of the more unusual approaches to management, and more recently turned them into computerized apps. There’s the Dot Collector, which employees use to rate one another on a grid visible to the entire firm; the Pain Button, used to record emotions like anger or frustration; and Baseball Cards, a summary of each employee’s strengths and weaknesses -- again, available for all at Bridgewater to see.
Several large technology companies in Silicon Valley are eager to implement his ideas, said Dalio. He declined to name them and estimated the first roll-out is at least 18 months away.
“In Silicon Valley there’s more of that notion that there’s a power in crowd-sourced decision-making and that it is idea-meritocratic,” said Dalio. “Traditional organizations are more challenged by that.”
In Dalio’s view, most companies are “dishonest” or “dysfunctional” because they don’t let employees speak freely and decision-making is often clouded by emotion or swayed by internal politics. While cautioning that he hadn’t studied them closely, he named Twitter Inc. and Netflix Inc. as two he admires.
Years of secrecy have made Bridgewater the subject of fascination and skepticism. The firm’s practice of recording interactions among employees and encouraging junior staffers to criticize higher-ups in public drew comparisons to cult-like behavior, comparisons Dalio rejects.
“It’s the reason for the success that I’ve had, that Bridgewater’s had,” he said. “This is not utopian. This is realistic.”
Read more: In Dalio’s Quest to Outlive Himself, Principles to Become Law
Academics who studied Westport, Connecticut-based Bridgewater have praised its methods. Robert Kegan, a psychologist and professor at Harvard University’s Graduate School of Education, identified Bridgewater as one of the few “deliberately developmental organizations.”
Management DecisionsDalio, 68, details some of Bridgewater’s tools in his new book, “Principles,” which is being published this month. In it, he writes that he was motivated in part by Joseph Campbell’s studies in comparative mythology, specifically the final stage in a hero’s journey when the returning adventurer shares what he has learned.
The book also recalls the “breakthrough” moment in 2012 when Dalio realized Bridgewater could take the same approach to management decisions that it had taken for years with investment decisions:program them into computer algorithms.
"I am confident that it can be the same," Dalio told Bridgewater’s management committee in a Nov. 10, 2012, memo he called "The Path Out: Systematizing Good Management." "The only questions are whether it can happen fast enough and what will happen in the meantime."
Dalio is still figuring out exactly how to distribute his management tools. One thing he has decided: They won’t be a money-making business for Bridgewater.
— With assistance by Saijel Kishan
http://www.bloomberg.com/news/articles/2017-09-17/ray-dalio-says-he-s-ready-to-give-away-bridgewater-s-secrets
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This is an Oct 2011 interview of Dalio by Charlie Rose.....
I have only included a small except, ..... I throughly encourage all to read the entire inveterview ,as it is massively insightful..... those who have not studied the mistakes of the past are doomed to repeat them
http://www.siliconinvestor.com/readmsg.aspx?msgid=27726685
| To: John P who wrote (12929) | 10/26/2011 4:54:40 AM | | From: John P | of 19959 | | CHARLIE ROSE: Ray Dalio is here. He is the founder of Bridgewater Associates. He created the investment firm in 1975 out of a two-bedroom apartment in New York City. Today the company managed roughly $125 billion in global investments. Its clients include foreign governments, sovereign banks, central banks and institutional pension funds.
Over the last two years, Bridgewater ranked as the largest and best- performing hedge fund in the world. In 2010, his returns were greater than the profits of Google, Amazon and eBay combined.
I`m very pleased to have Ray Dalio at this table for the first time to talk about a perspective on the global economic scene and a whole range of issues having to do with where we see ourselves and also a look at his own philosophy and what has informed his own opinions and the way he looks at the world. Having said that -- welcome.
RAY DALIO: Thank you. |
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Schism Atop Bridgewater, the World’s Largest Hedge Fund
Bridgewater Associates founder Ray Dalio and presumed heir apparent Greg Jensen called for votes on each other’s conduct; using the ‘Pain Button’
By
Rob Copeland and Bradley Hope
Updated Feb. 5, 2016 7:01 p.m. ET
Message 30447819
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Message 30592610
| To: The Ox who wrote (18223) | 5/22/2016 12:55:56 PM | | From: John P | 1 Recommendation Read Replies (2) of 19959 | | Big Hedge Fund Bridgewater Approved to Set Up Shanghai Subsidiary
Company registers with $7.6 million in capital
By JAMES T. AREDDY
Updated May 16, 2016 10:59 p.m. ET
SHANGHAI—The U.S. hedge fund Bridgewater Associates recently won approval to register a wholly owned subsidiary in Shanghai, providing new access to China’s often volatile financial markets for the large firm.
Bridgewater founder Ray Dalio registered Bridgewater (China) Investment Management Ltd. on March 7 with capital of 50 million yuan ($7.6 million), according to a filing at the Shanghai office of the State Administration for Industry and Commerce. Z-Ben Advisors, a Shanghai market research firm that tracks the investment-fund industry, pointed to the new registration in a report published on Monday. |
JP |
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