Bridgewater Associates Makes Over Its Management Ranks

Matty-Sways

Changes in leadership are meant to help transition the world's largest hedge fund away from Dalio’s day to day guidance.

One of Bridgewater’s top executives, COO Brian Kreiter, is leaving and Nir Bar Dea, previously the co-head of Bridgewater’s “investment engine,” was promoted to deputy chief executive under CEO David McCormick. Gerry Pasciucco, previously the vice chairman of Morgan Stanley and an adviser to Bridgewater’s internal board, was named head of finance and strategy.

Mr. Kreiter is leaving to launch a healthcare investing firm with Alex Karnal, a veteran partner at Deerfield Partners. Mr. Kreiter has said investments would focus on improving human health. Mr. McCormick said Bridgewater was “exploring ways we can support his efforts and stay deeply connected.”

Mr. Bar Dea, the new deputy CEO, has been at Bridgewater around 6 years and his former job co-running Bridgewater’s investment engine was viewed internally as one of the most complex at Bridgewater.

Ray Dalio and co-chief investment officers Bob Prince and Greg Jensen are also going to take a step back and the company is creating an investment committee “to broaden the decision making”. Osman Nalbantoglu, co-head of the investment engine, will head the investment committee. Mr. Dalio will be the tiebreaker should Messrs. Prince, Jensen and the rest of the committee disagree.

Bridgewater now manages about $150 billion, down from $168 billion at the end of 2019. After posting its worst monthly loss in history in March 2020, Bridgewater’s flagship fund, Pure Alpha, ended the year down 7.6%. Rokos Capital Management and Caxton Associates notched returns of 44% and 42.2% for the year in their master and flagship funds, respectively.

In the LinkedIn post, Mr. McCormick wrote that the new management structure would “enable us to best serve our clients and community, and fully harness the power of our next generation of leaders.”

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