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Top Q2 Buys of Ray Dalio's Bridgewater, Largest Hedge Fund in the World

August 14, 2013 | About:
Holly LaFon

Holly LaFon

276 followers
With $150 billion in assets under management, Ray Dalio’s Bridgewater Associates is the world’s largest hedge fund. Today it reported that it established a total of 156 new long positions in the second quarter, giving it 15% portfolio turnover quarter over quarter. There are 323 stocks in the $11.53 billion portfolio in total as of the end of the second quarter.

The hedge fund notably increased its exposure to emerging markets over the last year through various ETFs, which it kept in place through the second quarter. Combined these positions account for more than half of the portfolio’s value.

In a CNBC interview on July 17, Bridgewater co-president David McCormick described the firm’s picture of the economy:

“We’ve had two major strategies. We have our All-Weather strategy and our Pure Alpha strategy. If you think about what’s happened, the U.S. policy makers have managed deleveraging in a very good way, so we have what we would call beautiful deleveraging and we’re beginning to return to normal conditions. And when you begin to return to normal conditions, you would expect to see investors to begin to move out the risk curve in terms of the assets they’re holding, and that’s what we’ve seen over the last few years.”

The largest new positions of the firm in the second quarter are: Berkshire Hathaway (BRK.B), Micron Technology Inc. (MU), Maxim Integrated Products Inc. (MXIM), American Express Co. (AXP), FirstEnergy Corp. (FE) and Wynn Resorts Ltd. (WYNN).

Berkshire Hathaway (BRK.B)

Dalio purchased 167,539 of Berkshire Hathaway B shares in the second quarter when the price averaged $110. The position represents 0.16% of the portfolio and 0.01% of the company’s shares outstanding. The price has risen 6% since.

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Berkshire Hathaway Inc. is domiciled in the state of Delaware. Berkshire Hathaway Inc. has a market cap of $272.54 billion; its shares were traded at around $116.61 with a P/E ratio of 15.40 and P/S ratio of 1.60. Berkshire Hathaway Inc. had an annual average earnings growth of 7.8% over the past 10 years. GuruFocus rated Berkshire Hathaway Inc. the business predictability rank of 3-star.

Micron Technology Inc. (MU)

Dalio purchased 1,219,160 shares of Micron Technology in the second quarter when the price averaged $11. The holding represents 0.15% of the portfolio and 0.12% of shares outstanding. The price has since risen 34%.

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Micron Technology Inc. is a Delaware Corporation which was incorporated in 1978. Micron Technology Inc. has a market cap of $15.47 billion; its shares were traded at around $14.90 with and P/S ratio of 1.80. Micron Technology Inc. had an annual average earnings growth of 21.1% over the past 10 years. GuruFocus rated Micron Technology Inc. the business predictability rank of 2-star.

Maxim Integrated Products Inc. (MXIM)

Dalio purchased 361,528 shares of Maxim Integrated Products Inc. in the second quarter when the price averaged $30. The position represents 0.088% of the portfolio and 0.12% of shares outstanding. The price has declined 5% since.

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Maxim Integrated Products Inc. is a Delaware corporation originally incorporated in California in 1983. Maxim Integrated Products Inc. has a market cap of $8.38 billion; its shares were traded at around $28.80 with a P/E ratio of 19.40 and P/S ratio of 3.50. The dividend yield of Maxim Integrated Products Inc. stocks is 3.30%. Maxim Integrated Products Inc. had an annual average earnings growth of 1.5% over the past 10 years.

American Express Co. (AXP)

Dalio purchased 129,537 shares of American Express in the second quarter when the price averaged $71. The holding represents 0.085% of the portfolio and 0.01% of shares outstanding. The price has risen 7% since.

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American Express Co was founded in 1850 as a joint stock association and was incorporated in 1965 as a New York corporation. American Express Co has a market cap of $81.96 billion; its shares were traded at around $75.97 with a P/E ratio of 18.40 and P/S ratio of 2.60. The dividend yield of American Express Co stocks is 1.10%. American Express Co had an annual average earnings growth of 5.1% over the past 10 years. GuruFocus rated American Express Cothe business predictability rank of 3.5-star.

FirstEnergy Corp. (FE)

Dalio purchased 237,406 shares of FirstEnergy Corp. in the second quarter when the price was $42. The holding represents 0.078% of the portfolio and 0.06% of shares outstanding. The price has declined 12% since.

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FirstEnergy Corp. was organized under the laws of the State of Ohio in 1996. Firstenergy Corp. has a market cap of $15.55 billion; its shares were traded at around $37.19 with a P/E ratio of 50.60 and P/S ratio of 1.10. The dividend yield of Firstenergy Corp. stocks is 5.90%.

Wynn Resorts Ltd. (WYNN)

Dalio purchased 62,405 shares of Wynn Resorts in the second quarter when the price averaged $133. The holding represents 0.07% of the portfolio and 0.06% of shares outstanding. The price has increased 5% since.

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Wynn Resorts Ltd., a Nevada corporation, was formed in June 2002, and is a developer, owner and operator of destination casino resorts. Wynn Resorts Ltd. has a market cap of $14.18 billion; its shares were traded at around $140.22 with a P/E ratio of 25.60 and P/S ratio of 2.70. The dividend yield of Wynn Resorts Ltd. stocks is 2.50%. Wynn Resorts Ltd. had an annual average earnings growth of 28.8% over the past five years.

See more of Dalio’s buys and sales at Bridgewater’s portfolio here. Also check out the Undervalued Stocks, Top Growth Companies and High Yield stocks of Ray Dalio.

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