Billionaire investor Ray Dalio has officially ended his involvement with Bridgewater Associates, the hedge fund he founded nearly 50 years ago.
According to The Wall Street Journal, Dalio has sold his final stake in the firm and stepped down from its board.
Following the buyout of Dalio’s shares, Bridgewater reportedly issued new shares in a multibillion-dollar deal with Brunei’s sovereign wealth fund, granting it nearly a 20% ownership stake in the company.
Ray Dalio has warned that something “worse than a recession” may be on the horizon.
His recent sale of Bridgewater shares closes the final chapter of a journey that began in 1975, when he founded the hedge fund from a two-bedroom apartment. The 75-year-old billionaire stepped down as CEO in 2017 and later resigned as chairman by the end of 2021.
“When a country is overloaded with debt, the preferred path is to lower rates and devalue the currency, so it is worth betting that this is exactly what will happen.” Ray Dalio.
Dalio Raises Bitcoin and Gold Allocation to 15%
Ray Dalio has increased his recommended allocation to Bitcoin and gold as a hedge against growing economic risks.
Amid concerns over deglobalization, widening trade imbalances, and the lasting impact of tariff policies from the Trump era, Dalio has continued to back both assets as safe havens.
In late July, he advised investors to put as much as 15% of their portfolios into Bitcoin or gold, up from his earlier recommendation of just 2%, saying this could offer the “best return-to-risk ratio” in the face of potential crises.
Dalio and a long history of predictions
The Business veteran has always been famous for predicting the 2008 financial crisis, Dalio has continued to issue warnings, most recently forecasting a global debt crisis by late 2024.
While Ray Dalio earned fame for accurately predicting the 2008 financial crisis, not all of his economic calls have aged well, and some have drawn heavy criticism.
Back in 1982, Dalio wrongly predicted a global depression, a move that led to major losses for Bridgewater. He later admitted he was “dead wrong” in both his forecast and the strategy that followed, nearly driving the firm to bankruptcy. As Dalio steps away from the firm he built, his bold predictions continue to spark both attention and debate. Whether his latest warnings prove right or wrong, only time will tell.