Seeking Alpha
Newsletter provider, fund holdings, insider ownership
Profile| Send Message|
( followers)  

Ray Dalio founded Bridgewater Associates in 1975. Now the company manages approximately $122 billion in global investments for a wide range of institutional clients. Based in Westport, Connecticut, Bridgewater has about 1,200 employees, researching the market and generating analysis that informs bets on macroeconomic trends. Since the beginning of 2010, Bridgewater made profits from its investments in developed-market currencies, equities, emerging-market debts and currencies as well as commodities. The fund generated a 44.8% return last year. It also generated a return of 25.3% through August 31, despite the large declines in the stock market.

We don’t see Dalio’s entire portfolio moves, but the recent 13F filings show us his long stock positions in U.S. markets. Bridgewater Associates sold out a few positions over the third quarter, including $39 million NetApp Inc (NASDAQ:NTAP), $15.8 million Martin Marietta Materials Inc (NYSE:MLM), $14.9 million Polo Ralph Lauren Corp (NYSE:RL), $14.3 million Intel Corp (NASDAQ:INTC), $11.3 million Cisco Systems Inc (NASDAQ:CSCO), $10.5 million Apple Inc (NASDAQ:AAPL), etc. These positions had weighted average return of 19.51% since the end of September, higher than the 10.88% of SPY.

Bridgewater disclosed owning $16.9 million worth of Dentsply International Inc (NASDAQ:XRAY) at the end of September. The fund did not disclose holding any shares of XRAY last quarter. DENTSPLY is a designer, developer, manufacturer and marketer of a range of dental products. The company reported third-quarter revenue of $619.76 million, up from $541.82 million for the same quarter a year ago. Net income was $60.6 million, compared with $63.65 million last year. XRAY returned 16.88% since the end of third quarter. Steven Cohen’s SAC Capital Advisors also had $67 million invested in XRAY.

Bridgewater also opened new positions in Albemarle Corp (NYSE:ALB) and HollyFrontier Corp (NYSE:HFC). ALB returned 31.91% and HFC returned 4.88% since the end of September. Albemarle is a global developer, manufacturer and marketer of engineered specialty chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, automotive/transportation, pharmaceuticals, crop protection, food-safety and custom chemistry services. The company reported third-quarter revenue of $722.98 million, up from $585.04 million last year. Net income also increased 24% to $116.1 million. HollyFrontier, an independent petroleum refiner, generated $5.17 billion revenue in the third quarter, up from $2.09 billion last year. Net income was $523.09 million, compared with only $51.18 million last year. Jim Simons had $20 million invested in HFC and $16 million invested in ALB stocks.

During the third quarter, Bridgewater quadrupled its position in L-3 Communications Holdings (NYSE:LLL) to $25.9 million. L-3 is also a provider of a range of electronic systems used on military and commercial platforms. It reported third-quarter revenue of $3.79 billion, compared with $3.84 billion last year. Net income was $235 million, compared with $238 million a year ago. LLL returned 11.47% since the end of third quarter. Ralph Whitworth’s Relational Investors had $500+ million invested in LLL.

Bridgewater also significantly increased its position in Endo Pharmaceuticals Holdings (NASDAQ:ENDP). It had $9.66 million invested in ENDP at the end of June and reported to own $23.8 million worth of the stock at the end of September. The healthcare solutions company reported third-quarter revenue of $569.66 million, up from $389.26 million for the same period last year. ENDP returned 17.93% so far since the end of September. D. E. Shaw also had $200+ million invested in ENDP.

Overall Ray Dalio’s largest positions are the S&P 500 ETF, and emerging market ETFs EEM and VWO. His largest individual stock positions are Computer Sciences Corp (NYSE:CSC), Microsoft (NASDAQ:MSFT), Eastman Chemical (NYSE:EMN), Hewlett-Packard (NYSE:HPQ), Oracle (NYSE:ORCL), and Pfizer (NYSE:PFE). He also has smaller positions in Warren Buffett favorites such as General Dynamics (NYSE:GD), American Express (NYSE:AXP), General Electric (NYSE:GE), and Johnson & Johnson (NYSE:JNJ). Dalio’s long stock positions are only a fraction of his total assets under management. Nevertheless, his bets concentrate on large cap stocks that are favored by value investors.

Source: Billionaire Ray Dalio's Q3 Portfolio Moves