Yes, you heard right…CT taxpayers give $115 million to Bridgewater, world’s biggest hedge fund

Connecticut taxpayers are providing $115 million in aid to the world’s largest hedge fund.

Ray Dalio, the company’s founder and CEO is the highest paid person in the country. (He made $3.9 billion in 2011 alone.)

The package is, “an incentive to stay and expand in the state.”

They build a $750 million headquarters in Stamford (they are now based in Westport)

They increase their workforce from 1,225 to 2,000 over the next decade.

Apparently it is a win, win situation.

According to an article in, “without Connecticut’s cash, places like New York’s Westchester County, New York City and even parts of New Jersey might have lured Bridgewater with incentives of their own. The firm needs to move somewhere, Westchester isn’t that much further away from its current Westport home, and many employees anyway reverse-commute from Manhattan.”

So apparently, we had no choice.  We had to give Bridgewater $115,000,000.

The taxpayer-funded package includes a $25 million forgivable loan, at a 1 percent rate for 10 years, $5 million in grant funds for job training, $5 million for an alternative energy system, and $80 Million in Tax Credits.  That means that state revenue drop by $80 million and Bridgewater’s profits go up $80 million.

A recent Hartford Courant editorial endorsed Governor Malloy’s action, with a headline that read, “Bridgewater Deal: Hold your nose and help the hedge fund.”

Why?  Because hedge fund billionaires create jobs…

In fact, 800 to 1,000 new jobs over the next 10 years.  That is, he needs to create those jobs in order to have the $25 million forgivable loan, forgiven.  Apparently he keeps the other $90 million regardless.

The jobs are phased in over the next ten years and if each employee makes at least $150,000, per year, Connecticut picks up an additional $10,000 or so, per employee, per year, in state income taxes.

Putting aside the “extraordinary spin-offs” that are also promised, Connecticut’s taxpayers will be able to recoup their “investment” in Bridgewater sometime between 2031 and 2036.

Meanwhile, budget deficits continue to take their toll on vital services.  For example, last year Governor Malloy instituted the deepest cuts in state history to Connecticut’s public colleges and universities and Connecticut’s education funding formula remains somewhere between $800 million and $1.5 billion underfunded.

The biggest hedge fund in the world picks up over a hundred million dollars.  The highest paid person in the country makes more money and Connecticut ends up with fewer college graduates and a less educated workforce.

Oh, and every hedge fund in Fairfield Country, and there are many, knows that all they have to do is go in to see the Governor and tell him they are thinking of moving to Westchester County, but if Connecticut’s taxpayers cough up at least $100,000 for every employee that they presently have, they’ll stick around for a decade and even promise to add some jobs.

And to all this, the Hartford Courant concludes, “plus, if you buy the theory that inventive people spur the economy, Mr. Dalio is at the head of the creative class, an iconoclastic leader and thinker. So though it may not sit well, the deal may make sense.”

Finally, as one Connecticut business magazine wrote, “there can be no doubt that Gov. Dannel Malloy wanted Bridgewater Associates as part of his extended “First Five” program. He courted the company while attending a global economic forum in Davos, Switzerland, earlier this year. He sought to fulfill Bridgewater’s desire to expand by targeting prime property along the water’s edge. And on Aug. 15 he enthusiastically announced that Bridgewater would become eighth participant in the state’s economic development program that provides lucrative financial incentives to Connecticut-based businesses in exchange for job creation.”

While company officials had considered “a variety of different options” for relocating its headquarters, direct access to the water was a strong drawing card for the Stamford site, said the Bridgewater spokesperson. The city was selected for “a variety of reasons, but mainly what was very attractive was the potential to develop a site along the waterfront was great. What’s good about this is restoring a piece of waterfront property.” The spokesperson also cited Stamford’s proximity to mass transit and what he called “a thriving area close to New York City” as pluses.”

For more about the deal here are a few other news articles:

  • realsaramerica

    Seriously? Dalio lives in Greenwich, sponsors the town party every year. Does anyone with half a brain think he was REALLY going to move his HQ to New Jersey? Right.

    • Linda174

      No but this move makes his commute shorter, so maybe this is all about him…now he just has to get from Greenwich to Stamford while his chauffeur drives him.

  • Buygoldandprosper

    Next Five Jive is as bad as First Five Jive,only the finances of the state continue to be drained.
    DAN MALLOY could not fill the hole in the ground(next to the mall) in Stamford for fourteen years…and now he is running the states fianances into the ground.
    –“We can’t raise taxes by $3.5B,nor can we cut the budget by $3.5B. Let’s be honest” Dan Malloy,Dec.20,2012
    Right. Dan Malloy being honest?
    For a fun read:
    Soooo–Let’s just raise taxes and increase spending and hope for the best.
    Dan’s Long March to China,to troll for jobs, begins soon!
    Monkey brains and child labor for all!

  • brutus2011

    Dalio should run for governor when he gets tired of making billions each year. I bet he would straighten things out in Hartford quick.

    • jonpelto

      I’ll get the paperwork tomorrow to draft him.

      The motto could be “Any Man who makes $4 Billion can solve a $4 Billion budget problem”

  • buygoldandprosper

    For every Ray Dalio there are scores of Raj Rajaratnams,Beacon Hills,Sam Israel’s…going all the way back to Bernie Cornfeld!
    New Jersey tried a hedgie of sorts with Corzine and that did not work out too well for the state OR for MF Global.
    It is easy to make money when you charge 2% of assets,take 20% on the upside and take ZERO downside risk.
    America has bought the myth of these clowns and DAN really sucks up to the industry for his own reasons.
    They are a step ahead of the REIT scammers,like Dan’s buddies BLT,but are all bleeding the system dry.

  • I can’t believe that ANYONE with even half a brain is fooled by this crap.
    “plus, if you buy the theory that inventive people spur the economy, Mr. Dalio is at the head of the creative class, an iconoclastic leader and thinker.”
    Inventive? Creative? Bullshit! He’s a paper-pusher–a market manipulator. He didn’t invent something that will better society. He didn’t cure cancer, for pete’s sake. He plays the system and makes rich people richer. Enough of this crap! First of all, as someone else pointed out, Mr. Dalio is unlikely to uproot himself and move to NY. Second–how likely is it that Dalio actually pays his fair share of taxes? He probably pays a rate lower than I do. Third–to cover this welfare for an opportunistic societal parasite, how many more public sector jobs will need to be cut? Will there really be a net gain in employment, or will it be a wash–or a net loss?
    Why do we idolize people like Dalio? He is a parasite, a manipulator, a money-worshipping jerk.

    • jonpelto

      Could not have said it better myself!

  • The average tax payer in Fairfield pays 6% of income in property taxes. Factor in 1/3 for the average earnings of the lower earning spouse and these $200,000 income familes pay $12,000 in property tax, $11,000 in income tax at the 5.5% and additional personal property taxes, sales and gas adn excise taxes and employer taxes for unemployment, etc.
    $115,000 subsidies per job paid off in about 5 years in taxes.
    Then there’s the velocity of money and support jobs created in the local economy. What’s the SEBAC estimate? Every state worker laid off costs the private sector at least one job? Jared Bernstein was quoted by all the public sector unions during contracts strife two years ago
    “We find that if it weren’t for state and local austerity, the labor market would have 2.3 million more jobs today; half of these jobs would be in the private sector”
    Each job creates 2/3 of private sector job and another 1/3 is the indirect results and loss of revenue.
    Applying the same logic each private sector job wil create another job in the economy somewhere. If we consider that the hidden cost of public sector jobs includes the better than $40,000 in unfunded pensions and ‘Other Benefits” per household perhaps the deal looks better on paper when ‘All in’. A Haz Duty employee retires at 43 and we are stuck with them for life on the dole. Or more correctly hire a Haz Duty worker and we are burdened for life. Long live the volunteer firemen out here in the sticks!

    • Linda174

      You would make a horrible teacher. You rarely make a good argument and you make little sense. This may be the first post where you didn’t end with vouchers.

      • Vouchers!

        • Linda174

          You are officially incoherent and immature.

        • I’m thinking you got my point. And the saddest question of all: Would CT benefit most from another 1000 state workers or 1000 hedge funds employees? Has the work product of state employees become counter productive?
          ins’t that what the charter movement is all about? That and the facility lease proponents who advocate selling public buildings and leasing them back from private property management companies?
          Ugly stuff.

        • Guest

          Douche BAG!

    • Seriously–I read your post three times and I’m still not sure what you’re trying to say.

    • Bill Morrison

      No, you are not “stuck with them for life.” That public employee paid for his retirement pay by making donations into the retirement system throughout his working life. The retirement system is supposed to invest that money to allow it to grow. Often, the state government borrows against it without paying it back.

      I sincerely doubt that that worker retires at 43. Normal state retirement occurs at 35 years of employment, with some exceptions. For example, teachers do not participate in Social Security and are eligible to retire after 35 years. However, should a person enter the profession as his/her second career after completing a previous career, then that person can choose to receive either Social Security or a teacher’s retirement. He/She can choose to offset a teacher’s retirement by taking a penalty in order to collect SS. In other words, that person loses either Social Security or teacher’s retirement despite paying into both systems.

      Rich, quit giving us your right-wing conservababble. We are tired of the BS attack on public workers.

  • DanielH

    Now, now someone who makes $3.9 bill a year certainly doesn’t drive himself to work as you or I do, even a chauffeur would be lost time even though he isn’t behind the wheel…instead, if he moved the office to NJ, I’m sure he would simply have his pilot take him in the helicopter back and forth to the office….so I can see why Malloy simply HAD to do this “win, win” deal….actually no, I don’t. It’s insulting. Also, I wonder what the “extraordinary spin-offs” also promised are?

  • thestorm

    This deal and all involved should be investigated from top to bottom. The deal makes no sense for the taxpayers it’s a sham and a shame. Who is making the big money on this deal? Easy to see. Start the investigation there.

    “Connecticut’s taxpayers will be able to recoup their “investment” in Bridgewater sometime between 2031 and 2036.”