#strategy #news Ray Dalio's new strategy. Ray Dalio recent | WhiteRaven Capital
#strategy #news
Ray Dalio's new strategy.
Ray Dalio recently admitted to buying "some bitcoin." Today we break down the Q1 2021 statements of his fund, Bridgewater Associates, and look at what else the famous investor is investing in.
What has changed dramatically?
Since 2011, the fund's main asset has been financial company stocks. For 10 years, they hovered around 75-85% (see the chart below for details). However, from the 3rd quarter of 2020, the asset structure of the fund started to change dramatically.
Asset structure of Bridgewater Associates as of Q1 2021, change from previous quarter:
finance - 32.22% (-4.19%);
consumer non-essentials - 26.10% (+4.43%);
consumer staples - 16.20% (+3.99%);
healthcare - 10.12% (+1.68%);
raw materials companies - 5.79% (-2.35%);
communications - 4.94% (-1.32%);
industry - 2.34% (+0.63%);
information technologies - 1.43% (-2.56%);
other (transport, real estate) - 0.86% (-0.31%).
What was Ray Dalio buying?
The investor bought shares of 127 new companies and gained a stake in the existing 204. Despite the multitude of companies traded, nearly 40% of the entire fund consists of 10 major assets. These include the SPY index fund (10.97%), Procter & Gamble (3.84%) and Alibaba (2.8%).
Of the big purchases. Ray Dalio built up a stake in Vanguard's FTSE Emerging Markets index fund and increased his stake in Procter & Gamble, Coca-Cola, PepsiCo, and Walmart. In addition, the investor bought shares of Ford Motor and General Motors, each for 0.17% of the fund.
What was Ray Dalio selling?
Bridgewater Associates almost completely got rid of technology stocks, selling them on local hacks. For example, shares of NVIDIA, Qualcomm, MSFT (97%), and Oracle (93%) were sold off. The fund reduced its stake in 121 more companies and got rid of shares of 195 companies completely.
One of the significant deals was a cut in the fund's two largest assets, SPY and VWO. Their shares were reduced by 14 and 15%, respectively.
Ray Dalio bought bitcoin.
The investor bought, as he stated, "some bitcoin." Earlier Dalio highlighted the prospects of cryptocurrencies for investors but said that their formation will not be long and he is ready to invest only the amount from which he is willing to lose 80%. Now we just have to wait for BTC to be stable enough to be added to Bridgewater Associates' portfolio because for now, an investor purchase is only one of the few steps towards full institutional acceptance of the coin.
Conclusion.
Investor action is textbook: buyback cyclical stocks, get rid of overly protective index funds and dump tech stocks on the break of the business cycle after a pandemic crisis year. Each investor needs to make their own decisions depending on their chosen goals, but don't completely overlook the decisions of professional investors like Ray Dalio.
