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Alternative Market Briefing

Texas Teacher pension fund buys $250m stake in hedge fund Bridgewater Associates

Monday, February 20, 2012

From Precy Dumlao, Opalesque Asia – The $100bn Texas Teacher Retirement System and Bridgewater Associates have reached an agreement allowing the Texas pension system to acquire a minimum stake worth $250m in the world’s largest hedge fund run by Ray Dalio, various media reports said.

According to The Journal, the Texas pension’s board on Thursday approved the deal at meeting. The sale to Texas also comes at a time when Dalio was reported to be trying to reduce his ownership in Bridgewater.

The report said Dalio is planning to reduce his stake in the hedge fund firm to about 20% over the next 10 years from the current 60% ownership. It was also revealed that Bridgewater executives have been increasing their shareholdings in the company as part of the implementation of Dalio’s eventual minority position.

A letter released by Bridgewater on Friday told investors that the deal between the hedge fund and Texas Teachers pension system was in line of a "10-year plan to transition Bridgewater from being run by Ray, to being independent of Ray."

However, Bridgewater clarified that Dalio will not be leaving the firm or will change his involvement in the company despite his plan to reduce his stakes.

Ted Melina Raab, a senior legislative agent for the Texas American Federation of Teachers in Austin, Texas, has confirmed that indeed the ......................

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