Bridgewater Ensures Packs Of Wildebeest-Hunting, Risk-Parity-Achieving, Truth-Spreading Hyenas Will Roam Connecticut For Years To Come - Dealbreaker

Bridgewater Ensures Packs Of Wildebeest-Hunting, Risk-Parity-Achieving, Truth-Spreading Hyenas Will Roam Connecticut For Years To Come

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Bridgewater Associates told its investors that it will launch a new hedge fund this year, and had sold another minority equity stake in the firm to an unidentified buyer to help ensure its long-term viability. Bridgewater described its new fund, All Weather Major Markets, as a variation of its All Weather strategy that seeks to perform in any economic environment. In a Jan. 24 year-end report to investors, the hedge-fund firm said All Weather Major Markets would help ensure that its $65 billion All Weather fund doesn't grow too large, potentially hurting its returns. All Weather returned 15.3% in 2012, gross of fees, Bridgewater wrote. In the same 304-page report, Bridgewater said it had completed a deal at the end of last year to sell a nonvoting stake in the firm to an outside investor, marking the fourth time the firm made such a transaction. The firm didn't identify the investor or the size of the stake. "The proceeds of these transactions have allowed us to create a sustainable capital base that is independent of Ray, while remaining entirely employee-controlled," the Jan. 24 report said, referring to Bridgewater founder Ray Dalio. [WSJ]

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As many of you know, Bridgewater Associates is mega-successful, multi-billion dollar hedge fund guided by Principles, a company handbook written by founder and Mentor Ray Dalio, which instructs employees to go on radical truth seeking missions in order to better themselves and in turn the firm. Bridgewater takes the principles very seriously and each member of the staff is given spiral bound copies to read, highlight, and imbue their souls with. While the idea of Truth above all else is the overarching idea, there are literally hundreds of principles (such as 31a. "Ask yourself whether you have earned the right to have an opinion," 130. "...Firing people is not a big deal..." and 184. "Use checklists") which span 123 pages and are broken down into outline form after being explained at length. Though familiarity with them has always been an essential part of the job, there has never been formal test determining that all employees met the required level of efficiency. Until now. Apparently the firm has notified employees that there will be an exam on the material, which has resulted in people carrying around their copies and studying whenever they can, particularly on the bus ride from Manhattan to Wesport and back. No date has been announced but it will be administered online à la one of those mandatory HR quizzes that won't let you skip forward. According to proctors, Bridgewater simply wants to use the test as an opportunity to asses what people know, how they're interpreting the principles, and what requires further elucidation. It's unclear what the penalty for failing will be but remedial Principles classes seem obvious. Because we would hate to see any of you have to stay after school, we've highlighted what is most likely to be covered-- feel free to print these out and add to your study guide. ********************************************* ********************************************* ********************************************* ********************************************* ********************************************* ********************************************* ********************************************* Principles [Bridgewater]   essential     (which expects the staff to “probe” each other regularly, no matter one’s rank, in order to foster openness and meritocracy).