Ray Dalio, the billionaire investor and founder of Bridgewater Associates, has officially divested his remaining stake in the hedge fund he started 50 years ago. This move coincides with growing concerns and repeated warnings from Dalio regarding a potential global debt crisis.
According to a letter sent to investors, Bridgewater repurchased the last ownership shares held by Dalio-related entities. Following this transaction, the firm issued new shares to the Brunei Investment Agency, a sovereign wealth fund, in a deal that gave the agency nearly a 20% stake in the company. The Brunei fund had been a long-time investor, and this deal converts their investment from a Bridgewater fund into equity in the firm. While the Brunei Investment Agency is now one of Bridgewater's largest shareholders, co-investment chief Bob Prince maintains a larger ownership position. Dalio also stepped down from Bridgewater's board.
Dalio founded Bridgewater Associates in 1975 out of a two-bedroom apartment. He initially announced a succession plan over a decade ago, with a 10-year timeline for the transition. Dalio relinquished control in 2022, when he transferred his voting rights to the board of directors and stepped down as one of the firm’s three co-chief investment officers, though he remained on the board at that time. In a post on X, Dalio stated he was "thrilled" to see Bridgewater thriving without him.
This transition occurs as Dalio has been increasingly vocal about his predictions of an impending economic downturn, rooted in global debt. Most recently, Dalio has warned of a potential "economic heart attack" for the U.S. if the government fails to reduce the budget deficit to 3% of GDP. He has also stated that when a country is overloaded with debt, the "preferred path is to lower rates and devalue the currency," suggesting this is a likely outcome.
Dalio has been warning about a coming debt crisis for years. In his new book, "How Countries Go Broke: The Big Cycle," Dalio warns of a "very high long-term risk" of a debt crisis in the U.S. He described a "death spiral" that could occur if the government is forced to sell more bonds to finance spending but has to pay higher interest to buyers to close the sale. According to Dalio, a situation where rising interest rates lead to worsening credit risk, leading to less demand for debt, and consequently, higher interest rates, is a classic debt "death spiral".
Amid these concerns, Dalio has advised investors to consider allocating a portion of their portfolios to assets like Bitcoin and gold. In late July 2025, he recommended allocating up to 15% to Bitcoin or gold to optimize the “best return-to-risk ratio". While acknowledging Bitcoin's potential, he has stated a preference for gold.
It is important to note that Bridgewater's assets under management have decreased in recent years, from $168 billion to $92.1 billion at the end of 2024. This decline partly results from capping the size of its flagship Pure Alpha fund to improve performance. Since capping the fund, its performance has improved, with Pure Alpha gaining 17% in the first half of 2025. For the five-year period ending in December 2024, Pure Alpha gained 5.9%.
