At Bridgewater Associates, the world’s largest hedge fund, employees are expected to familiarize themselves with “a little white book” written by the firm’s founder, Ray Dalio, that’s filled with more than 200 of his “principles” on life and business. Aside from the overtones of Chairman Mao and his little red book, a New York Times story that’s based on documents from a filing against Bridgewater by the National Labor Relations Board and interviews with former employees and people who’ve done work with the $154 billion company suggests there are other odd practices at the Westport, Conn.-based firm.
An employee who filed a complaint earlier this year with the Connecticut Commission on Human Rights and Opportunities likened the company in his complaint to a “cauldron of fear and intimidation,” the Times reports. Employees are under constant video surveillance, all meetings are recorded and security guards regularly patrol the building, all as part of an effort to “silence employees who do not fit the Bridgewater mold.”
Employees in some units of the company are required to lock up their personal cell phones when they arrive at work, the sources tell the Times.
Such secrecy and surveillance sounds, and probably is, uncomfortable, but then again hedge funds do tend to be secretive places with enormous amounts of money at stake. But at Bridgewater, the practice appears to have been taken a step further, with meetings between employees and managers not only routinely recorded but also shown to other employees. For example, new are shown videos of confrontations between executives and managers in an effort to “give new employees a taste of Bridgewater’s culture of openly challenging employees and putting them on the spot,” the Times reports. In one such video (which is no longer shown, according to the former employees), a confrontation between executives and a female manager ends up with the woman breaking down and crying. That certainly must have made for a memorable onboarding experience.
The employee who filed the initial complaint with the state commission was Christopher Tarui, an adviser to large institutional investors, who contended that he was sexually harassed by his male supervisor. In his complaint, Tarui said he did not report the conduct “out of fear it would become public because of the firm’s policy of videotaping confrontations between employees.” He ultimately complained to Bridgewater’s HR department, he said, because his supervisor gave him a bad performance rating despite the fact he’d been promoted and given a pay raise a few months earlier. Tarui said in his complaint that the firm promised to investigate, but management tried to persuade him to withdraw his allegations.
Tarui said all of his meetings, including his meeting with HR to complain about the alleged harassment and a subsequent meeting with top executives, were recorded and “widely shared” with managers at Bridgewater, the Times reports.
“The company’s culture ensures that I had no one I could trust to keep my experience confidential,” Tarui said in the complaint.
He filed the complaint in January. However, in March both Tarui and Bridgewater jointly asked to withdraw the complaint from consideration by the Connecticut human rights commission, which halted its investigation. The Times notes that Bridgewater employees (as at many companies) are required to settle disputes through binding arbitration.
However, the Times reports that in a related action, the NLRB later filed a separate complaint against Bridgewater accusing the company of “interfering with, restraining and coercing” Tarui and other employees from exercising their rights through confidentiality agreements that all employees are required to sign once they’re hired. The Times obtained the NLRB complaint and Tarui’s initial complaint through a Freedom of Information Act request. In a statement to the Times, Bridgewater said “we are confident our handling of this claim is consistent with our stated principles and the law.”Tweet This!