When Ray Dalio finally gave up the reins of Bridgewater Associates 18 months ago, he ceded control of the world’s biggest hedge fund to a younger generation. He also left behind a firm confronting restless investors after years of lackluster returns.
Chief Executive Officer Nir Bar Dea needed to revive a flagship hedge fund that was once the industry’s most profitable but has since lagged rivals. That meant shrinking the fund, cutting costs, firing longtime veterans, promoting other employees and revamping a culture that — depending on who was describing it — was either the firm’s great strength or a glaring weakness.