Brunei Invests in Bridgewater Associates, Acquires 20% Stake

Brunei's sovereign wealth fund, Brunei Investment Agency, has acquired an almost 20% stake in Bridgewater Associates, the hedge fund manager founded by Ray Dalio. The investment helps to spur higher gains for other institutional investors. Bridgewater has been selling stakes to institutions for over a decade, with some investors reporting annualized returns of up to 8.7%.

Brunei's sovereign wealth fund, the Brunei Investment Agency, has acquired an almost 20% stake in Bridgewater Associates, the hedge fund manager founded by Ray Dalio. The investment is part of a broader strategy by the fund to diversify its holdings and align with long-term growth opportunities. This acquisition follows a series of similar moves by other institutional investors over the past decade, with some reporting significant returns.

The Brunei Investment Agency's decision to acquire a stake in Bridgewater's holding company comes after the fund pulled money from one of Bridgewater's strategies to make the investment. The move is part of a broader trend of institutional investors buying stakes in hedge funds to gain exposure to their investment strategies and management teams. Bridgewater has been selling stakes to institutions for over a decade, with notable investors including the Teacher Retirement System of Texas, the Ontario Municipal Employees Retirement System, Singapore's sovereign wealth fund, and the International Monetary Fund.

The investment in Bridgewater's holding company is expected to help spur higher gains for other institutional investors. Bridgewater's flagship fund, Pure Alpha II, has shown improved performance in recent years, but over a longer period, returns have been uneven. This means that a long-term investment in the firm itself can be more lucrative than betting on its most popular products.

Ray Dalio, the founder of Bridgewater, completed his exit from the company in 2025 by selling his final shares and resigning from the board. The transaction marks the completion of a years-long transition at the world's largest hedge fund, with $92.1 billion in assets under management as of Dec. 31, 2024.

The Brunei Investment Agency's investment in Bridgewater Associates is a significant development in the hedge fund industry, demonstrating the continued interest from institutional investors in the firm's long-term growth prospects.

References:
[1] https://www.reuters.com/markets/wealth/bridgewater-founder-ray-dalio-sells-remaining-stake-hedge-fund-letter-says-2025-07-31/
[2] https://www.bloomberg.com/news/articles/2025-08-01/brunei-tweaks-bridgewater-bet-to-a-lucrative-20-firm-stake