A few days ago, the world's largest hedge fund - Bridgewater Fund staged a power overlap.

After 47 years of founding Bridgewater, Ray Dalio handed over his voting rights and resigned as co-chief investment officer, taking a back seat.

  The world's largest hedge fund

  On October 4, local time, Bridgewater's co-CEOs Nir Bar Dea and Mark Bertolini announced that Bridgewater's control has been transferred from founder Ray Dalio to the operating board.

Bridgewater Fund has also officially transformed from a founder-led "investment boutique" to an "enduring investment institution".

  It is reported that Rui Dalio abstained from voting on September 30 and officially resigned as co-chief investment officer. Bridgewater previously had three co-chief investment officers.

Going forward, Dalio will retain a minority stake as well as a board seat and will continue to advise other chief investment officers.

  The succession plan of this legendary hedge fund has been brewing since 12 years ago.

In 2010, Dalio began planning to exit.

In the following years, seven people have served as sole or co-CEOs of Bridgewater.

Over the years, Dalio has gradually handed over day-to-day management, investment oversight and a majority stake in the company.

  In December 2021, a key step was taken in the succession plan-Bridgewater Fund announced the establishment of an operating board.

In January 2022, the board selected Nir Bar Dea and Mark Bertolini as the company's co-CEOs.

  Nir Bar Dea and Mark Bertolini said it was an exciting time for Bridgewater.

So far, the operating board is in place and the leadership transition has been successful.

"We are well positioned to continue serving our customers and strive to have a profound impact on the industry."

  'Feeling great' to meet the next person

  Dalio's experience in founding Bridgewater Fund has been talked about with great enthusiasm.

In high school, the legendary investor had little interest in studying.

But because of his passion for the market and finance, Dalio finally entered the university with the first place in his class, and then entered Harvard Business School.

  After graduation, Dalio worked briefly at two Wall Street firms.

In 1975, he decided to start his own investment arm, Bridgewater Fund, in a two-bedroom Manhattan apartment, and later pioneered an all-weather trading strategy based on macro themes.

From its inception in 1991 to the end of June 2022, Bridgewater's flagship fund achieved an average annual return of 11.4%.

Under Dalio's leadership, Bridgewater has also become the world's largest hedge fund.

  In management, Dalio's style is unique.

He believes that extreme transparency brings authenticity, allowing employees to see for themselves what is going on and avoiding office politics.

He also encouraged employees to overthrow each other's ideas through merciless criticism.

However, industry insiders have said that this management style has brought about higher turnover.

  On the day the transfer of rights was announced, Dalio lamented on social media, "Today is a very special day for me and Bridgewater, because I hand over control of Bridgewater to the next generation, and I am very grateful to The people and 'machines' running Bridgewater now feel great."

  Dalio called this transitional moment the culmination of his 47-year journey, "I can now imagine it being passed on from generation to generation without me".

  'Cash is no longer rubbish'

  It's worth noting that while handing over management of the company, Dalio made another big shift -- he changed his mind about cash.

On October 4, Dalio said on social media: "I don't think cash is garbage anymore."

  In a tweet, he quoted Keynes, a well-known economist, as saying, "When the facts change, I change my mind."

In the context of existing interest rates and the Fed's shrinking balance sheet, Dalio said cash can be seen as neutral -- neither a very good deal, nor a very bad deal, and current short-term rates are appropriate.

  Previously, Dalio has repeatedly called "cash is garbage".

He believes that in an inflationary environment, investors' cash holdings will become worthless, and what can help investors is a diversified portfolio.

  However, Dalio has changed his mind on cash amid rising U.S. interest rates.

Wall Street analysts also said that holding cash in this environment is not a bad idea and could help investors buy those assets more cheaply if asset prices continue to fall.