Hedge fund titans face what comes next as they pass certain age

Succession plan: Dalio, who started Westport, Connecticut-based Bridgewater more than four decades ago, told investors Wednesday that he’s stepping down as interim co-chief executive officer. – Bloomberg

BILLIONAIRE Ray Dalio, the sage of Bridgewater Associates, has a theory about organisations. When leaders hit 60, he says, it’s time to start preparing the youngbloods to run the place.

Grizzled veterans in the investment industry are finding Dalio’s advice easier said than done as they struggle to line up the next generation. Dalio, 67, announced this week the second shakeup within a year at the top ranks of his US$160bil firm, showing that succession planning is sometimes tougher than formulating an investment strategy.