Ray Dalio, the founder of Bridgewater, one of the most influential and biggest hedge funds in the world, is stepping down from his prolonged post as Co-Chief Executive Officer due to an agonizing shake-up in their management.
The man that Dalio had hired to help run the world’s biggest hedge fund firm valued at $160 Billion abruptly departed just after ten months from his role.
Jon Rubinstein, the said Co-CEO worked for Apple under Steve Jobs for 16 years. He was amongst one of the leading creators of iPod. He lasted only ten months in Bridgewater. Dalio, who was halfway through a 10-year succession plan, will be replacing Rubinstein.
Dalio’s position will be taken by David McCormick, who has worked under President George W. Bush in a treasury department and also gave interviews for a position in President Donald Trump’s Administration. He was supposed to join as the Deputy Defense Secretary of Trump’s Administration. But later, he dropped out on his own due to some conflict with his future head, Defense Secretary James Mattis. McCormick will be joining Eileen Murray, who has been Co-CEO for four years and at the firm from last eight years. Meanwhile, Dalio is planning to hand over the charge of his business to a group rather than a particular leader.
While Dalio is leaving his management position in the firm, he will be retaining his position as the Co-Chairman and Co-Chief Investment Officer.
Dalio wrote in a letter on LinkedIn- “As I love markets, I’m excited about this change and expect to remain a professional investor at Bridgewater until I die or until those running Bridgewater don’t want me anymore.” He also posted that Rubinstein is not “Culturally fit for Bridgewater,” they mutually agreed to it.
Rubinstein’s appointment to Bridgewater was opposed by people who are knowledgeable about tech executive since he originally belonged to consumer electronics hardware background. After leaving Apple in 2016, he went on to become the CEO of Palm Inc. He later left Palm Inc.; he left the CEO position after it was acquired by Hewlett-Packard.
Before Rubinstein was appointed in Bridgewater in May, the Co-Investment head and a long-term employee, Greg Jensen was supposedly selected for the role of Co-CEO. However, Jensen gave up the promotion after a small conflict with Dalio over whether the creator will be around for his hedge fund succession plan.
Dalio admits that Bridgewater is a tough place to work at. The turnover price is quite high in the first two years itself for the newly-hired employees as 21 percent leaves the job in the first year itself and another 10 percent in the following year. The rate then comes down to 3 percent in the fifth consecutive year. He wrote in a LinkedIn post, “The Firm is not for everyone but for those who it is for, there is nothing like it.”