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Pro Analysis

Breakingviews: Bridgewater’s radical reality is a revolving door

Ray Dalio at the World Economic Forum in Davos, Switzerland.
David A. Grogan | CNBC
Ray Dalio at the World Economic Forum in Davos, Switzerland.

Bridgewater boss Ray Dalio's penchant for radical transparency and truthfulness may now be shortchanging his investors. He has long maintained that the culture at his $160 billion hedge fund is not for everyone. That discomfort now seems to persist at the very top: for the second time within a year the billionaire investor is overhauling who runs the firm.

In some respects, they have had fair warning. Dalio has been characteristically open about his desire to relinquish management duties. He started the process seven years ago, trying out various executives and experimenting with anywhere from one to three chief executives at a time.

Now he's stepping down and ditching co-CEO Jon Rubinstein as well. The former Apple and Hewlett-Packard executive had been recruited with much fanfare, but lasted just 10 months before finding out that he didn't fit in.