In this piece, we will take a look at Ray Dalio's latest 13F portfolio: top 15 stocks. If you want to skip our introduction to the well-known investor and want to jump ahead to the top stocks in this list, then head on over to Ray Dalio's Latest 13F Portfolio: Top 5 Stocks.
Ray Dalio is one of the most respected names on Wall Street. He has been successful in the investment world since he was 12. His business acumen, supplemented by a Harvard education, propelled Bridgewater Associates, a hedge fund he founded, into becoming the largest and one of the most successful hedge funds. The hedge fund's flagship fund, Pure Alpha 11, delivered an average annual return of 11.4% between 1991 and 2022, outperforming the overall market.
Founded in 1975, Bridgewater Associates deploys a distinctive investing strategy focusing on radical transparency, meritocracy and risk management. With Dalio as the co-chief investment officer, the hedge fund rose to become one of the most successful hedge funds by combining macroeconomic analysis and fundamental analysis to identify high-risk reward opportunities.
The $16.5 billion hedge fund currently manages assets from a wide range of clients, including institutional investors, pension funds and sovereign wealth funds. It boasts of a diversified portfolio with investments in services and consumer goods accounting for a big share in the equity markets holdings. The hedge fund is also heavily invested in the healthcare sector, with technology and financial sectors following suit.
Dalio's investment prowess became evident at the height of the financial crisis in 2008 as Bridgewater Associates delivered gains of 8.7%. In contrast, the S&P 500 tanked 38.5%, hurt by the bubble in the real estate sector that had a ripple effect on the financial sector. In 2018, Bridgewater Associates would yet again be in the spotlight as it posted returns of 14.6%, even as other hedge funds lost 6.7% on average.
As the bearish run started sending shockwaves in early 2022, Bridgewater added $10 billion worth of short positions, trades that ended up generating significant returns as European equities tumbled. The hedge fund's flagship fund returned 32% to investors in the first half. While it did incur significant losses in the second half, the gains in the first half were sufficient to ensure the hedge fund performed much better than the overall market as the S&P 500 fell 19%.
While Dalio gave up control of Bridgewater Associates in 2022, he still plays an active role in mentoring the current CEO, Nir Bar Dea, and other investment officers. He also sits on the board and remains an influential investor and market commentator.
His perspectives and Bridgewater's plays in the markets provide valuable insights into ideal investment opportunities. The hedge fund exiting its position in Chinese stocks in the third quarter is already sending shockwaves as the second largest economy is showing signs of weakness after a botched bounce back from the COVID-19-triggered slowdown. Bridgewater Associates exited its position in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and electric vehicle makers XPeng Inc. (NYSE:XPEV) and Li Auto Inc. (NASDAQ:LI) as China's economic recovery falters. While Dalio has always been a China bull, his hedge fund also reduced its exposure to EV maker NIO Inc. (NYSE:NIO), Pinduoduo e-commerce platform owner PDD Holdings, and online lender Lufax Holdings.
"China is in the midst of a secular deleveraging that is likely to take many years to work through," the hedge fund said in a September 30 report.
While the financial community closely watches Dalio's investment strategies, Bridgewater Associates' expansion of its portfolio with 130 new stocks in Q3 2023 is already eliciting strong talk on Wall Street. The hedge fund took new positions in Broadcom and Netflix, among many other stocks, signaling it remains confident about US consumer spending power heading into the New Year.
Ray Dalio of Bridgewater Associates
After analyzing Bridgewater Associates' Q3 2023 13F holdings, we have compiled a list of Ray Dalio's top stock holdings based on their performance and returns over the years. The stocks are ranked based on the hedge fund's stakes in them.
Ray Dalio's Latest 13F Portfolio: Top Stocks
15. Mondelez International, Inc. (NASDAQ:MDLZ)
Bridgewater Associates Equity Stake: $170.6 Million
Mondelez International, Inc. (NASDAQ:MDLZ) is a multinational food company that offers snacks and beverages. The consumer defensive play in Bridgewater Associates portfolio provides biscuits and baked snacks, including cookies, crackers, salted snacks, snack bars, cakes and pastries, chocolates, gums and candies, and various cheese and groceries.
While Mondelez International, Inc. (NASDAQ:MDLZ) is up by about 4.5% for the year, it boasts a 2.43% dividend yield and is one of the top dividend stock picks for Ray Dalio. Bridgewater Associates held stakes worth $170.56 million as of Q3 2023, accounting for 1.03% of the portfolio.
14. Meta Platforms, Inc. (NASDAQ:META)
Bridgewater Associates Equity Stake: $186.8 Million
Meta Platforms, Inc. (NASDAQ:META) is one of the best-performing stocks in Bridgewater Associates portfolio, going by the 165% year-to-date gain.
13. Visa Inc. (NYSE:V)
Bridgewater Associates Equity Stake: $195.1 Million
As of Q3 2023, Bridgewater Associates held stakes in Visa worth $195.147 million, accounting for 1.17% of the portfolio.
12. Abbott Laboratories (NYSE:ABT)
Bridgewater Associates Equity Stake: $200.9 Million
Abbott Laboratories (NYSE:ABT) is one of Bridgewater Associates' top stock holdings in the healthcare sector, offering exposure to the discovery, development, manufacture, and sale of healthcare products. The company deals in diagnostic products, nutritional products, and medical devices. It makes generic drugs for digestive problems.
11. CVS Health Corporation (NYSE:CVS)
Bridgewater Associates Equity Stake: $201.7 Million
Rhode Island-based CVS Health Corporation (NYSE:CVS) is one of Ray Dalio's top stock holdings in the healthcare sector. Its pharmacy service segment provides pharmacy benefits management solutions, including plan design and administration.
10. Alphabet Inc. (NASDAQ:GOOG)
Bridgewater Associates Equity Stake: $206.6 Million
Alphabet Inc. (NASDAQ:GOOG) remains one of Ray Dalio's top stock holdings, given its 42% year-to-date gain and solid track record of earnings growth. As of Q3 2023, Bridgewater Associates held stakes worth $206.61 million, accounting for 1.24% of the portfolio.
9. Starbucks Corporation (NASDAQ:SBUX)
Bridgewater Associates Equity Stake: $230.9 Million
Starbucks Corporation (NASDAQ:SBUX) is a global coffee company and retailer with over 32,000 stores in over 80 countries. It is known for its high-quality coffee, tea, and other beverages, as well as its food, merchandise, and loyalty program. Based in Seattle, Washington, the company also offers a variety of digital services, such as mobile
8. PDD Holdings Inc. (NASDAQ:PDD)
Bridgewater Associates Equity Stake: $265.7 Million
PDD Holdings Inc. (NASDAQ:PDD)'s been one of Ray Dalio's top stock holdings in 2023, going by the 40% gain year to date. The hedge fund held 2.7 million shares in the company, valued at $265.66 million, accounting for 1.6% of the portfolio.
7. McDonald’s Corporation (NYSE:MCD)
Bridgewater Associates Equity Stake: $390.4 Million
McDonald’s Corporation (NYSE:MCD) is a multinational fast food chain and one of Ray Dalio's top stock holdings owing to its impressive track record in dividend payments. The consumer cyclical play has paid dividends for over 46 years while operating and franchising McDonald’s Corporation (NYSE:MCD)'s restaurants internationally. Its offerings include hamburgers and cheeseburgers, chicken sandwiches and nuggets, fries, salads, shakes, frozen desserts, and sundaes.
Up by about 2.6% for the year, McDonald’s Corporation (NYSE:MCD) boasts of a 2.46% dividend yield accounting for 2.35% of Bridgewater Associates portfolio.
6. Johnson & Johnson (NYSE:JNJ)
Bridgewater Associates Equity Stake: $424.3 Million
Johnson & Johnson (NYSE:JNJ) remains Bridgewater Associates' top holdings in the healthcare sector, specializing in research development, manufacturing and selling of healthcare products. Johnson & Johnson (NYSE:JNJ) offers skin health/beauty products, baby care products as well as oral care products
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Disclosure: None. Ray Dalio's Latest 13F Portfolio: Top 15 Stocks is originally published on Insider Monkey.