Ray Dalio’s Bridgewater Associates, the world’s second-largest hedge fund, continues to make waves in the financial sector, boasting $196.8 billion in assets under management as of March 30. Despite Dalio’s generous philanthropic endeavors, which have exceeded the billion-dollar mark, his personal fortune remains formidable with an estimated net worth of approximately $19 billion, according to Forbes. Dalio, although stepping down from his roles as chairman and co-chief investment officer to serve in an advisory capacity, still holds sway over the hedge fund’s performance.

In 2022, against the backdrop of a weak market, Bridgewater’s flagship Pure Alpha fund performed impressively, posting a 9.5% gain for the year. As of June 30, the hedge fund’s top nine stock and fund holdings have been revealed through its latest 13F filings, with the iShares Core S&P 500 ETF (ticker: IVV) and iShares Core MSCI Emerging Markets ETF (IEMG) each making up 5.5% of the portfolio. Other significant holdings include well-known names such as Procter & Gamble Co. (PG), Johnson & Johnson (JNJ), and Coca-Cola Co. (KO). Investors may find some solace knowing that Bridgewater’s biggest investment is in iShares’ exchange-traded fund, or ETF, which tracks the S&P 500, indicating Dalio’s confidence in the continuing rally of the U.S. stock market.

Ray Dalio’s Bridgewater Associates: Top Nine Holdings

Ray Dalio’s Bridgewater Associates, the world’s second-largest hedge fund with $196.8 billion in assets under management, continues to perform exceptionally well, even after Dalio stepped down from his chairman role in late 2022. Today, we look at Bridgewater’s nine top stock and fund holdings as of mid-2023, providing insights into the investment strategy of one of the world’s leading hedge funds.

The S&P 500 Bet

Bridgewater’s biggest investment is the iShares exchange-traded fund (ETF), which tracks the S&P 500. This move suggests Dalio’s confidence in the continued rally of the U.S. stock market and his belief that a severe recession will be avoided. Bridgewater owns about 2 million shares of the IVV ETF, with its value sitting at approximately $883.1 million.

Chinese Market Diversification

In 2022, Bridgewater moved away from individual Chinese stocks, like Alibaba Group and JD.com, due to perceived regulatory risks. Instead, Dalio has diversified his approach to the Chinese market through the IEMG fund, an emerging market ETF with only about 27% exposure to China. Bridgewater owns roughly 17.9 million shares of this fund, valued at about $866.9 million.

Blue-Chip Stock Holdings

Bridgewater’s largest individual stock holding is Procter & Gamble, a consumer products company known for brands like Pampers, Tide, and Bounty. Despite underperforming the S&P 500 in 2023, Procter & Gamble remains a solid defensive investment during uncertain market periods. Other blue-chip holdings include Johnson & Johnson, Coca-Cola, and PepsiCo, all of which provide stable and defensive investment opportunities.

Other Significant Investments

Bridgewater also holds significant stakes in the SPDR S&P 500 ETF Trust, Costco Wholesale Corp., and McDonald’s Corp. Despite selling a portion of their shares in the second quarter, these investments still make up a considerable chunk of Bridgewater’s portfolio, demonstrating Dalio’s continued belief in their long-term value.

Takeaways

Dalio’s investment strategy reveals a strong confidence in the U.S. market, particularly the S&P 500. It also shows a shift from individual Chinese stocks to a more diversified approach via the IEMG fund. Furthermore, Dalio’s reliance on blue-chip companies and consumer staples underscores the importance of stable, defensive investments in uncertain times. The diversification of Bridgewater’s portfolio is a testament to Dalio’s investment philosophy of not putting all eggs in one basket. Whether you’re an investor looking for inspiration or simply interested in the strategies of top hedge funds, Bridgewater’s portfolio provides valuable insight.