A look at Bridgewater’s 13F filed with the US SEC reveals that Ray Dalio’s hedge fund firm has invested about half a billion dollars into some of the world’s largest firms while withdrawing from an ETF that tracks large-cap US equities and positions in three China ETFs.
The moves were made during the 3rd quarter of this year and reflect his recommendation that investors diversify between currencies, asset classes, and countries in order to reduce risk but not reduce opportunities.
Dalio founded Bridgewater Associates, the world’s largest hedge fund, which manages about $140 billion.
During the 3rd quarter of 2020, Dalio invested in about $392 million in Alibaba, $195 million in Walmart, and about $100 million in Coca Cola. Alibaba is not a new bet for Dalio, although he did increase his exposure. But Walmart and Coca Cola are new stocks in his portfolio. He also increased his bets in McDonald’s, Abbott Labs, Estee Lauder, Mondelez, Procter & Gamble, Johnson & Johnson, and Danaher.
What is surprising about Dalio’s 3Q activity is his divestment from China, who has until now been bullish on Chinese investments. He has lowered his positions in three China ETFs by several millions of dollars. In the past, Dalio has said that not investing in China is “very risky.”