Ray Dalio Makes Lots of Little Moves in Q4

Ray Dalio
By Hedge Funds [CC BY 3.0], via Wikimedia Commons

Bridgewater Associates’ Ray Dalio has one of the most diversified portfolios out there. What is most interesting, however, is how he has allocated sector-by-sector – namely, that industry-wise, he’s kept his holdings relatively unchanged. In both Q3 and Q4 of 2013, he allocated 17% of his assets in technology, 14% energy, and 10% in each finance and healthcare. It’s also worth noting that three stocks comprise 88.09% of his entire fund.

Ray Dalio’s New Acquisitions

Ray Dalio made 71 new purchases during Q4, none of which have a significant allocation in his portfolio.

Ray Dalio’s Increased Positions

Ray Dalio augmented his stake in 156 companies during the fourth quarter of 2013, including two of his top three positions.

This fund run by a SAC Capital alum bought restaurant stocks amid the pandemic

restaurantPrentice Capital Management was up 6.6% for the first four months of the year, compared to the S&P 500's 9.3% decline and the Russell 2000's 21.1% decline. The HFRX Equity Hedge Index was down 9.4% for the quarter. Q1 2020 hedge fund letters, conferences and more Gross and net exposures In his first-quarter letter to Read More

He bought 496,000 additional shares of Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO), which now comprises 33.70% of his entire fund and is his largest position. The ETF is calculated and run by the Vanguard Group, the third largest provider of ETFs in the United States with almost $337.2 billion under management.

The billionaire increased his stake in iShares MSCI Emerging Markets Indx (ETF) (NYSEARCA:EEM) by 3.5 million shares, meaning it now composes 26% of his portfolio. He first purchased EEM assets in 2010.

Ray Dalio’s Decreased Positions

Dalio scaled back 65 of his veteran positions, the most significant being the SPDR S&P 500 ETF Trust (NYSEARCA:SPY).

The SPDR S&P 500 ETF tracks and invests in the performance of the S&P 500 Index. Dalio sold 1.5 million of his shares, SPY now composing 28.43% of his fund. It remains is second-largest holding. The ETF is up +1.66% this year and +11.75% since October. Richard Chilton, David Tepper and Jorge Lemann also have positions in the ETF.

Ray Dalio’s Sold Out Positions

Ray Dalio cashed out of 89 positions during Q4, none with an allocation of over 0.12%.