Bridgewater's Bold New Employee Ownership Venture

Bridgewater Associates is set to expand its employee ownership initiative, allowing over 60% of its workforce to own equity. This shift, uncommon in the hedge fund industry, aligns incentives and marks a departure from traditional multi-strat fund practices. The firm is also investing heavily in AI strategies.

Bridgewater Associates, a leading hedge fund, is dramatically increasing employee equity ownership next year, as revealed in an internal memo. More than 60% of its staff will soon own a stake, a significant leap from the current 1% ownership.

The announcement coincides with Bridgewater's 50th anniversary and signals a strategic shift under CEO Nir Bar Dea. The move aligns employees' interests with the success of Bridgewater's flagship fund, Pure Alpha, which has recently achieved its highest performance since 2010.

In an industry where employee ownership is rare, especially compared to Silicon Valley tech giants, this initiative reflects a broader strategic overhaul including new AI-driven investment strategies and leadership transitions, following founder Ray Dalio's exit.

(With inputs from agencies.)