The Teacher Retirement System of Texas has taken an equity stake in one of the world’s largest hedge funds, Bridgewater Associates.
In a deal finalized earlier this week, the approximately $100 billion pension fund will own a small share of Bridgewater, according to a person familiar with the matter.
The equity stake comes as Bridgewater’s founder, Ray Dalio, seeks to reduce his ownership in the Westport, Conn., firm.
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Mr. Dalio, who owns about 60% of Bridgewater, may reduce his stake to about 20% over the next 10 years, people familiar with the matter say. Several top executives at Bridgewater have been buying stakes as part of this transition.