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Bridgewater Case Analysis

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Bridgewater Case Analysis

Introduction Bridgewater Associates is the world’s largest and most successful hedge fund organization, but has a very different culture that you will not find at any other corporation. They follow a radical transparency and truth at all cost theory. The founder, Ray Dalio, believes that his unique culture is the reason for Bridgewater’s success. Through closely reviewing the facts, SWOT analysis, and several options that Bridgewater could do, I recommend that they should not change their culture because it has given them success and a competitive advantage.
I. Situational Analysis
Bridgewater has become the world’s largest hedge fund organization. It was founded in 1975 by Raymond
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Harvard undergrads report Bridgewater is more desirable than Goldman Sachs(Gross, 2013).
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Financial
2008: The worst financial crisis, Bridgewater made 9.4% for its investors when most investors lost money (Polzer).
2012: Approximately $120 billion in assets with a track record of excellent returns (Polzer).
2012: Top fund, Pure Alpha, annualized a return of 14.7% (Polzer)
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Customers/Buyers
Bridgewater started to publish quarterly reviews, monthly performance updates, and a daily newsletter (Polzer).
Dedicated 160 associates to work directly with its 300 clients (Polzer).
Bridgewater will discuss through disagreements with their customers just like they do with their employees (Polzer).
1990-2000’s: was recognized for its excellent client service (Polzer).
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Analysis
IV. SWOT Analysis
Strengths
Weaknesses
Largest hedge fund Company in the world.
9.4% return for its investors when most other investors lost money.
Giving and Getting Constant Feedback at all levels
Matching People to Jobs
Pushes people to be the best they can be
Lateral thinking is competitive advantage
High Employee Turnover Rate
Investing in employees that won’t stay because of the strong culture

Opportunities
Threats
Revamp the Culture
Change or rid of the “Principals”
Ask employees how they feel about the culture and what would like to see for a change if any.

Competition in the
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