Ray Dalio (Trades, Portfolio) manages the $150 billion Westport, Connecticut-based hedge fund Bridgewater Associates, the largest hedge fund firm in the world. The equity portfolio at Bridgewater has a total value of only $7.98 billion. According to filings disclosed Thursday, Dalio added 139 new positions to it in the second quarter.
The total equity portfolio contains 341 positions, though three account for roughly three-quarters of it: Vanguard FTSE Emerging Markets (VWO, Financial), SPDR S&P 500 (SPY, Financial) and iShares MSCI Emerging Market Income ETF (EEM, Financial).
Bridgewater is also famous for its mysterious operating principles and storied radical transparency. It uses a global macro investing style. Though sometimes ranking as the best-performing firm, in 2015, Bridgewater’s Pure Alpha hedge fund returned 4.7%, while its All Weather fund lost 7%, Forbes reported. Since inception, the All Weather strategy has an annualized return 7.8%, and the Pure Alpha strategy has an annualized return of 11.8%, through January 2015.
The five biggest new positions Dalio started were: Johnson & Johnson (JNJ, Financial), Parker Hannifin Corp. (PH, Financial), CVS Health Corp. (CVS, Financial), VF Corp. (VFC, Financial) and Invesco Ltd. (IVZ, Financial).
Johnson & Johnson (JNJ, Financial)
Dalio purchased 15,733 shares of Johnson & Johnson, a 0.2% portfolio weight. The company’s second-quarter share price averaged $114.
Johnson & Johnson has a market cap of $338.62 billion; its shares were traded around $123.77 with a P/E ratio of 23.25 and P/S ratio of 4.97. The trailing 12-month dividend yield of Johnson & Johnson stocks is 2.46%. The forward dividend yield of Johnson & Johnson stocks is 2.59%. Johnson & Johnson had an annual average earnings growth of 4.0% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 3.5-star.
Parker Hannifin Corp. (PH, Financial)
Dalio purchased 133,700 shares of Parker Hannifin, a 0.18% portfolio weight. The company’s second-quarter share price averaged $112.
Parker Hannifin Corp. has a market cap of $16.67 billion; its shares were traded around $123.78 with a P/E ratio of 22.91 and P/S ratio of 1.48. The trailing 12-month dividend yield of Parker Hannifin Corp. stocks is 2.04%. The forward dividend yield of Parker Hannifin Corp stocks is 2.06%. Parker Hannifin Corp. had an annual average earnings growth of 7.70% over the past 10 years. GuruFocus rated Parker Hannifin Corp. the business predictability rank of 4-star.
CVS Health Corp. (CVS, Financial)
Dalio purchased 149,700 shares of CVS Health Corp., a 0.18% portfolio weight. The company’s second-quarter share price averaged $100.
CVS Health Corp. has a market cap of $103.42 billion; its shares were traded around $97.00 with a P/E ratio of 22.30 and P/S ratio of 0.64. The trailing 12-month dividend yield of CVS Health Corp. stocks is 1.67%. The forward dividend yield of CVS Health Corp. stocks is 1.75%. CVS Health Corp. had an annual average earnings growth of 11.5% over the past 10 years. GuruFocus rated CVS Health Corp. the business predictability rank of 5-star.
Dalio purchased 161,900 shares of VF Corp., a 0.12% portfolio weight. The company’s second-quarter share price averaged $63.
VF Corp. has a market cap of $26.51 billion; its shares were traded around $63.93 with a P/E ratio of 25.35 and P/S ratio of 2.22. The trailing 12-month dividend yield of VF Corp. stocks is 2.24%. The forward dividend yield of VF Corp. stocks is 2.40%. VF Corp. had an annual average earnings growth of 8.6% over the past 10 years. GuruFocus rated VF Corp. the business predictability rank of 2-star.
Dalio purchased 300,822 shares of Invesco Ltd, a 0.1% portfolio weight. The company’s second-quarter share price averaged $30.
Invesco Ltd. has a market cap of $12.17 billion; its shares were traded around $29.70 with a P/E ratio of 15.01 and P/S ratio of 2.49. The trailing 12-month dividend yield of Invesco Ltd. stocks is 3.66%. The forward dividend yield of Invesco Ltd. stocks is 3.81%. Invesco Ltd. had an annual average earnings growth of 13% over the past 10 years. GuruFocus rated Invesco Ltd. the business predictability rank of 4-star.
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