Ray Dalio's Bridgewater Associates Adjusts Portfolio, Notably Reduces Johnson & Johnson Stake

Firm releases 3rd-quarter portfolio

Summary
  • New buys include Broadcom, Netflix and Nvidia.
  • Firm trims holding in Johnson & Johnson.
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Insight into Bridgewater's Q3 Moves: Dalio's Strategy Reflects in Latest 13F Filings

Ray Dalio (Trades, Portfolio), the investment luminary behind Bridgewater Associates, has made significant changes to his portfolio in the third quarter of 2023. As the founder of the world's largest hedge fund, Dalio's investment strategies are closely watched by the financial community. Bridgewater, known for its strong emphasis on principles and deep economic insights, has been a major player in the investment world since its inception in 1975. Dalio's approach, which combines radical transparency with a meritocratic culture, has been instrumental in the firm's success and influence.

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New Additions to Dalio's Portfolio

Ray Dalio (Trades, Portfolio)'s Bridgewater Associates has expanded its portfolio with 130 new stocks. Noteworthy additions include:

  • Broadcom Inc (AVGO, Financial), with 54,041 shares valued at approximately $44.89 million, making up 0.27% of the portfolio.
  • Netflix Inc (NFLX, Financial), comprising 94,950 shares, which equates to 0.22% of the portfolio and a total value of $35.85 million.
  • NVIDIA Corp (NVDA, Financial), with 48,108 shares valued at $20.93 million, accounting for 0.13% of the portfolio.

Key Position Increases

In addition to new acquisitions, Dalio has increased his stakes in several companies:

  • iShares Core MSCI Emerging Markets ETF (IEMG, Financial) saw an addition of 1,251,567 shares, bringing the total to 19,184,515 shares. This represents a 6.98% increase in share count and a 0.36% impact on the portfolio, with a total value of $912.99 million.
  • Coca-Cola Co (KO, Financial) had an additional 781,225 shares, totaling 8,996,115 shares. This adjustment signifies a 9.51% increase in share count, with a total value of $503.60 million.

Positions Sold Out Completely

Dalio's third-quarter moves also included completely exiting positions in 88 holdings:

  • Corteva Inc (CTVA, Financial), where all 331,813 shares were sold, impacting the portfolio by -0.12%.
  • Activision Blizzard Inc (ATVI, Financial), with the liquidation of all 196,394 shares, causing a -0.1% impact on the portfolio.

Significant Reductions in Key Holdings

The portfolio also saw reductions in 214 stocks, with the most significant being:

  • Johnson & Johnson (JNJ, Financial), reduced by 457,073 shares, leading to a -14.37% decrease in shares and a -0.47% impact on the portfolio. The stock traded at an average price of $165.01 during the quarter and has seen a -14.51% return over the past three months and -14.62% year-to-date.
  • Vanguard FTSE Emerging Markets ETF (VWO, Financial), reduced by 1,876,729 shares, resulting in a -23.91% reduction in shares and a -0.47% impact on the portfolio. The stock traded at an average price of $40.82 during the quarter and has returned -3.29% over the past three months and 1.30% year-to-date.

Overview of Dalio's Current Portfolio

As of the third quarter of 2023, Ray Dalio (Trades, Portfolio)'s portfolio encompasses 742 stocks. The top holdings include 5.52% in iShares Core MSCI Emerging Markets ETF (IEMG, Financial), 5.31% in iShares Core S&P 500 ETF (IVV, Financial), 4.23% in Procter & Gamble Co (PG, Financial), 3.04% in Coca-Cola Co (KO, Financial), and 2.83% in Costco Wholesale Corp (COST, Financial). The investments span across all 11 industries, with a focus on Consumer Defensive, Healthcare, Consumer Cyclical, Technology, Financial Services, Communication Services, Energy, Industrials, Basic Materials, Real Estate, and Utilities.

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The adjustments made by Ray Dalio (Trades, Portfolio) in the third quarter reflect a strategic rebalancing of Bridgewater's portfolio, aligning with the firm's long-term investment philosophy and economic outlook. Investors and market analysts will continue to monitor Dalio's moves for insights into the evolving market trends and potential investment opportunities.

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