Renowned investor Ray Dalio and his hedge fund firm, Bridgewater Associates, LP have just released their Q1 2023 portfolio. The 13F form shows a total value of 16.3 billion dollars distributed across a staggering 710 stocks.
Examining the current holdings
Upon closer inspection of the report, it's clear that Dalio and his team have decreased their position value from 18.3 billion to 16.3 billion dollars. This represents a decrease of 1.93 billion dollars from the previous quarter. Nonetheless, the portfolio continues to offer a wealth of investment opportunities for those who choose to follow Dalio's lead.
It's important to note that Dalio's investment philosophy is rooted in the principles of risk parity, which aims to balance the risks of various asset classes. This approach has been successful in the past, and has been a key component of Bridgewater's investment strategy. In addition, the portfolio reflects the firm's overall belief in diversification and careful management of risk.
Examining the current holdings, it's clear that Dalio has a strong focus on technology stocks, with nearly a quarter of the portfolio being invested in that sector. The portfolio also has significant investments in consumer discretionary, healthcare and financial companies.
One notable feature of the portfolio is its relatively high number of small cap stocks, which make up a significant portion of the portfolio. This may reflect Dalio's faith in the abilities of smaller companies to outperform their larger peers.
Another noteworthy feature is the the portfolio's relatively low exposure to energy, materials and industrial stocks. This may reflect a belief among the Bridgewater team that these sectors are currently facing significant challenges that may limit future growth potential.
In terms of individual holdings, little can be determined from the 13F form as it only discloses the names of public stocks held by the firm. However, hedge funds are not required to disclose short positions, investments in private companies or derivatives. Therefore, it's important to note that the 13F form only gives a partial picture of Bridgewater's holdings and investment strategy.
In any case, the release of Ray Dalio's Q1 2023 portfolio is sure to generate interest among investors who are seeking guidance from one of the world's most respected investors. While the changing portfolio value may seem concerning at first glance, it's important to keep in mind the principles of risk parity and diversification that underpin Bridgewater's investment philosophy.
Top Holdings
- Bank of America Corporation (BAC) - 40.86% of portfolio
- Wells Fargo & Co (WFC) - 36.96% of portfolio
- Alibaba Group Holding Ltd (BABA) - 19.04% of portfolio
- US Bancorp (USB) - 3.14% of portfolio
Bank of America Corporation (BAC): Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses, large corporations and governments with a full range of banking, investing, asset management and other financial and risk management products and services.
Wells Fargo & Co (WFC): Wells Fargo is a diversified financial services company that provides banking, insurance, investments, mortgage, and consumer and commercial finance services through its various subsidiaries.
Alibaba Group Holding Ltd (BABA): Alibaba is the world's largest online and mobile commerce company, measured by GMV (CNY 5.725 trillion/$846 billion for the fiscal year ended March 2019).
US Bancorp (USB): U.S. Bancorp is a multi-state financial services holding company headquartered in Minneapolis, Minnesota, with approximately $513 billion in assets as of December 31, 2018.
Top Sells
- VWO (reduced by 38.74%)
- PDD (reduced by 41.24%)
- BRK-B (reduced by 99.48%)
- WMT (reduced by 21.47%)
- PFE (reduced by 38.79%)
VWO: Vanguard FTSE Emerging Markets ETF seeks to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index, which includes approximately 4,000 stocks of companies located in emerging markets around the world.
Pinduoduo Inc (PDD): PDD operates as an online marketplace in China, allowing users to participate in group buying deals to purchase products at significantly lower prices.
Berkshire Hathaway Inc (BRK-B): Berkshire Hathaway is a multinational conglomerate holding company, which owns subsidiaries in a variety of industries, including insurance, energy, railways, manufacturing, retail and more.
Walmart Inc (WMT): Walmart is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.
Pfizer Inc (PFE): Pfizer is a leading global pharmaceutical company that discovers, develops, manufactures, and sells healthcare products worldwide.
SEO Subtitle: Top Sells: VWO, PDD, BRK-B, WMT, and PFE, are among those companies whose position values were reduced by the investor.
