Bridgewater Associates

Ray Dalio established Bridgewater Associates in 1975. The firm has gained prominence for its innovative investment approaches and research on economic trends.

In 1981, after facing a significant financial loss, Ray Dalio had to rebuild Bridgewater from scratch. He implemented new strategies and focused on diversification to reduce risk.

In August 1982, Mexico defaulted on its debt, signaling potential trouble for other emerging countries. This event initially supported Dalio's predictions of an upcoming depression.

In 1985, Bridgewater attracted its first institutional fund to manage directly, a $5 million account from the World Bank, marking a significant milestone in the company's history.

In 1987, Bridgewater's first account was funded with US$5 million through a fixed-income investment by Hilda Ochoa-Brillembourg of the World Bank.

Bridgewater Associates launched its flagship fund, Pure Alpha, in 1989. The fund is known for being a 'diversified alpha source' that invests across various asset classes to balance risk through active management.

Ray Dalio introduced the principle of separating alpha and beta investments in 1990, aiming to generate higher returns that are uncorrelated to the general market and actively managed.

In 1991, Bridgewater Associates launched its Pure Alpha fund and began promoting portable alpha investment strategies.

In 1992, Bridgewater Associates introduced its global bond overlay program, expanding its investment offerings.

In 1993, three senior leaders at Bridgewater proposed giving feedback to Ray Dalio about his impact on company morale. The feedback highlighted both Dalio's strengths and areas where he needed improvement in managing people.

In 1995, Bridgewater Associates executives participated in discussions at the U.S. Treasury and provided advice to the federal government on the development of inflation-indexed bonds.

The Bridgewater All Weather fund was launched in 1996, focusing on low fees, global inflation-linked bonds, and global fixed-income investments. Initially started as the founder's personal trust fund, it later opened to clients with the goal of achieving high risk-adjusted returns.

Since 2000, Bridgewater Associates has experienced significant growth, increasing its staff from 100 to 1200 employees and expanding its office space to three additional buildings in the area.

Following the 2001 stock market crash, Bridgewater Associates issued pension obligation bonds to address underfunding issues, marking a strategic financial move.

In 2002, Bridgewater Associates was recognized as the World's Best Money Manager by Nelson Information due to the impressive 16.3% return on its International Fixed Income program.

By the year 2003, Bridgewater Associates' assets under management had increased from US$5 billion in the mid-1990s to US$38 billion.

Britt Harris, formerly of Verizon Investment Management, became co-CEO of Bridgewater in November 2004 but left after six months. Ray Dalio mentioned that although there was a cultural fit issue, Harris is highly regarded for his character.

In 2005, Bridgewater Associates founder, Ray Dalio, created a handbook called Principles, which was distributed to all employees. The publication is a mix of self-help, management strategies, and insights on natural selection in a business environment.

The company's flagship Pure Alpha fund started returning money to clients in 2006 to maintain its investment strategy and enforce capacity limits. It also began moving all clients into alternative strategies, eliminating traditional investment approaches.

In 2007, Bridgewater Associates started warning about the dangers of excessive financial leverage and estimated future losses due to bad debts, positioning themselves and their clients well for the 2008 global market crash.

Bridgewater's Pure Alpha fund protected its investors from the majority of the stock market crash in 2008.

In 2009, Bridgewater's Pure Alpha fund did not perform well as the economic growth surpassed expectations, resulting in a minimal gain compared to the Dow Jones Industrial Average.

From 2010 until early 2013, James Comey served as Bridgewater's general counsel. He is a former United States Deputy Attorney General and the current Director of the Federal Bureau of Investigation.

In 2011, Bridgewater opened new funds, including All Weather and Pure Alpha Major Markets, with differing fee structures and investment strategies.

In July 2011, Ray Dalio, the founder of Bridgewater Associates, relinquished his CEO title to become a mentor within the company.

By 2013, Bridgewater Associates had grown to 1,400 employees and was managing approximately $150 billion for its investors, primarily institutional clients.

In December 2019, Eileen Murray, co-chief executive of Bridgewater Associates, revealed her intention to resign from her position in March 2020, leaving David McCormick as the sole CEO.

In 2020, Bridgewater Associates reported significant losses attributed to COVID-19 related market volatility, impacting its flagship Pure Alpha II fund.

Karen Karniol-Tambour discusses Bridgewater's leadership, culture, and outlook on markets and economies in a wide-ranging discussion with David Rubenstein.

Co-CIO Karen Karniol-Tambour explains the challenges of private sector borrowing in a tight economy with high fiscal spending and strong balance sheets.

Bridgewater alum Paul Podolsky discusses the implications of Russia's role in the global order post the death of Alexei Navalny and its significance for investors.