This article is part of a series that provides an ongoing analysis of the changes made to Bridgewater Associates’ 13F portfolio on a quarterly basis. It is based on their regulatory 13F Form filed on 11/10/2022. Please visit our Tracking Ray Dalio’s Bridgewater Associates 13F Portfolio series to get an idea of their investment philosophy and our previous update for the fund’s moves during Q2 2022.
Assets Under Management (AUM) is at around $140B. The 13F portfolio is less than ~20% of their total AUM. This quarter, the 13F portfolio value decreased ~16% from ~$23.60B to ~$19.75B. The holdings are diversified with recent reports showing around 1000 different stakes. Around 42 of them are significantly large (more than ~0.5% of the 13F portfolio) and they are the focus of this article. The top three individual stock positions are at ~12% while the top five holdings are close to ~18% of the 13F assets: Procter & Gamble, Johnson & Johnson, PepsiCo, Coca-Cola, and Costco Wholesale.
Note 1: The firm uses asset class diversification among uncorrelated positions to achieve absolute returns. As such the stakes can be on or against debt, equity, and other markets around the world. To learn more about their unique investment philosophy, check out their video channel and Ray Dalio’s books.
Note 2: It was reported in June that Bridgewater Associates had built a $10.5B bet against European businesses including ASML Holding, (ASML), TotalEnergies SE (TTE), Sanofi (SNY), and SAP SE (SAP).
Note 3: Although Ray Dalio is a Sinophile whose fascination for China goes back to 1984, it is interesting that only ~1% of Bridgewater’s AUM is invested in China.
Stake Disposals:
Medtronic plc (MDT): MDT was a 0.95% of the portfolio position built over the last two quarters at prices between ~$87 and ~$113. This quarter saw the stake disposed at prices between ~$81 and ~$95. The stock currently trades at $79.94.
Stake Increases:
Johnson & Johnson (JNJ): The 3.90% JNJ stake was a small position in their first 13F filing in Q4 2005. The stake has wavered. The current position was built during the four quarters through Q2 2021 at prices between ~$137 and ~$171. The two quarters through Q1 2022 had seen a ~55% stake increase at prices between ~$155 and ~$180. The stock currently trades at ~$175. There was a ~9% stake increase this quarter.
Coca Cola (KO) and PepsiCo (PEP): The four quarters through Q2 2021 saw a ~8.2M shares KO stake built at prices between ~$45 and ~$56. That was followed with a ~40% stake increase in Q1 2022 at prices between ~$58 and ~$63. The stock currently trades at ~$61, and the stake is fairly large at 3.25% of the portfolio. Last two quarters have seen only minor adjustments. PEP built up occurred in a similar fashion. The four quarters through Q2 2021 saw a 2.7M shares stake built at prices between ~$129 and ~$148. That was followed with a ~55% stake increase over the two quarters through Q1 2022 at prices between ~$150 and ~$176. The stock is now at ~$180 and the stake is at 3.32% of the portfolio. Last two quarters have seen only minor adjustments.
Note: Much smaller stakes in these two positions were part of the portfolio during the decade through 2016.
iShares Core S&P 500 ETF (IVV): A fairly large stake in IVV was built during the 2017-2018 timeframe at prices between ~$245 and ~$295. It was sold down during the two quarters through Q1 2021 at prices between ~$325 and ~$400. Last five quarters had seen the stake rebuilt at prices between ~$368 and ~$477. The stock is now at ~$396 and the stake is at 3.19% of the portfolio. There was a minor ~4% stake increase this quarter.
Note: a much smaller stake in IVV was part of the portfolio during the 2012-16 timeframe.
McDonald’s Corp (MCD): MCD is a 2.47% of the portfolio position first built during the four quarters through Q2 2021 at prices between ~$184 and ~$237. The two quarters through Q1 2022 saw another ~55% stake increase at prices between ~$222 and ~$270. The stock is now at ~$273. There was a ~10% trimming last quarter and a minor ~2% increase this quarter.
Abbot Laboratories (ABT), Alphabet Inc. (GOOG), Boston Scientific (BSX), Colgate Palmolive (CL), Estee Lauder (EL), iShares MBS ETF (MBB), Intuitive Surgical (ISRG), Kimberley Clark (KMB), Li Auto (LI), Merck Inc. (MRK), Meta Platforms (META), MasterCard (MA), Mondelez International (MDLZ), NIO Inc. (NIO), Pinduoduo Inc. (PDD), Sysco Corp (SYY), and Visa Inc. (V): These small (less than ~1.60% of the portfolio each) stakes were increased this quarter.
Stake Decreases:
Procter & Gamble (PG): PG is currently the largest position at 4.23% of the portfolio. It was established in H2 2020 at prices between ~$120 and ~$144. H1 2021 saw a ~80% stake increase at prices between ~$124 and ~$139. The two quarters through Q1 2022 also saw a ~45% increase at prices between ~$139 and ~$164. The stock currently trades at ~$141. There was minor trimming in the last two quarters.
iShares MSCI Core Emerging Market ETF (IEMG): The large (top five) 3.24% IEMG stake was first purchased in 2016. The position size peaked at over 15M shares in 2017. The stake had since been sold down. Recent activity follows. Q3 2021 saw a ~225% stake increase at prices between ~$61 and ~$67. That was followed with a stake doubling in Q1 2022 at prices between ~$51 and ~$62. IEMG currently trades at ~$47. There was minor trimming in the last two quarters.
CVS Health (CVS), Costco Wholesale (COST), Target Corp (TGT), and Wal-Mart Stores (WMT): CVS is a 1.49% of the portfolio stake primarily built last quarter at prices between ~$89 and ~$107 and the stock currently trades at ~$95. There was a minor ~2% trimming this quarter. The 2.87% of the portfolio COST stake was built during the four quarters through Q2 2021 at prices between ~$305 and ~$395 and the stock currently trades at ~$521. There was a ~30% stake increase in Q1 2022 at prices between ~$477 and ~$577. Last two quarters have seen only minor adjustments. TGT is a 0.95% of the portfolio stake established in H2 2020 at prices between ~$119 and ~$180. Q2 2021 saw a ~55% stake increase at prices between ~$200 and ~$245. That was followed with a ~50% increase over the last two quarters at prices between ~$139 and ~$249. This quarter saw a ~20% reduction at prices between ~$141 and ~$180. The stock currently trades at ~$162. The 2.65% WMT position was purchased during the four quarters through Q2 2021 at prices between ~$119 and ~$152. Q4 2021 saw the stake sold down by ~45% at prices between ~$135 and ~$151. Last two quarters had seen a two-thirds increase at prices between ~$118 and ~$160. The stock is now at ~$148. This quarter saw a ~14% trimming.
Vanguard FTSE Emerging Market ETF (VWO): VWO is a fairly large 2.73% of the portfolio stake. It was first purchased in 2009. The position size peaked at over 115M shares in 2014. This is compared to 14.76M shares currently. Recent activity follows. 2020 saw a ~45% selling at prices between ~$31 and ~$50 while in Q3 2021 there was a stake doubling at prices between ~$49 and ~$53. Next quarter saw a ~30% selling while in Q1 2022 there was a similar increase. Last quarter saw a one-third reduction at prices between ~$40.50 and ~$48. VWO currently trades at $39.25. This quarter also saw a ~4% trimming.
SPDR S&P 500 ETF (SPY): A small position in SPY was first established in Q1 2006. An amended filing in Q4 2007 showed a huge 40% of the 13F portfolio stake (~12M shares) established in the high 140s price-range. The position size peaked at ~21M shares by 2011. The decade through 2020 had seen the position reduced to 3.7M shares through minor selling in most quarters. H1 2021 saw another ~45% reduction at prices between ~$370 and ~$430. That was followed with a ~20% selling this quarter at prices between ~$357 and ~$430. SPY now trades at ~$394 and the stake is at 2.65% of the portfolio.
Starbucks Corp (SBUX): The 1.28% SBUX stake was built during the four quarters through Q2 2021 at prices between ~$74 and ~$118. The two quarters through Q1 2022 saw another ~45% stake increase at prices between ~$79 and ~$117. The stock currently trades at $96.97. Last two quarters have seen minor trimming.
SPDR Gold Trust ETF (GLD): The position was first built in 2017 at prices between ~$110 and ~$128. 2020 saw a ~25% selling at prices between ~$140 and ~$191. That was followed with a ~40% selling next quarter at prices between ~$159 and ~$178. Q3 2021 saw a similar increase at prices between ~$162 and ~$171. There was a ~40% reduction last quarter at prices between ~$168 and ~$185. The stock currently trades at ~$164, and the stake is at ~1% of the portfolio. This quarter saw marginal trimming.
Baidu Inc. (BIDU), Berkshire Hathaway (BRK.B), Chipotle Mexican Grill (CMG), Dollar General (DG), Exxon Mobil (XOM), General Mills (GIS), iShares iBOXX Inv. Grd. ETF (LQD), Monster Beverage (MNST), Pfizer Inc. (PFE), and Stryker Corp (SYK): These small (less than ~1% of the portfolio each) stakes were reduced during the quarter.
The spreadsheet below highlights changes to Bridgewater Associates’ 13F holdings in Q3 2022:
Source: John Vincent. Data constructed from Bridgewater Associates’ 13F filings for Q2 2022 and Q3 2022.
Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.
John Vincent
Focused on analyzing 13F reports & building tools to help DIY investors generate absolute returnsthrough exploiting inefficiency, volatility, and momentum.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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