Kimberly White
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 rules Form 13F filed on 13.11.2023. Please visit our TRACKING Ray Dalio’s Bridgewater Associates 13F Portfolio Series to get an idea of their investment philosophy and ours previous update for fund movements during Q2 2023.
Assets under management ((AUM) are about $150 billion. The 13F portfolio is less than ~20% of their total AUM. This quarter, the value of the 13F portfolio increased ~2% from ~$16.19 billion at ~$16.55 billion. The areas are diverse with recent reports showing about 1000 different stocks. About 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 ~10% while the Top Five holdings are close to ~15% of 13F assets: Procter & Gamble, Coca-Cola, Costco, PepsiCo and Wal-Mart Stores.
Note 1: The firm uses asset class diversification among uncorrelated positions to achieve absolute returns. As such, equities can be in 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: Although Ray Dalio is a sinophile whose fascination with China dates back to 1984, it is interesting that China exposure in the portfolio is de-minimis.
Stock growth:
iShares Core MSCI Emerging Markets ETF (IEMG): The large 5.52% IEMG stake was first purchased in 2016. Recent activity follows. Q3 2021 saw a ~225% increase in shares at prices between ~$61 and ~$67. This was followed by a doubling of the stock in the first quarter of 2022 with prices between ~$51 and ~$62. Q1 2023 also saw an increase of ~22% with prices between ~$46 and ~$52. IEMG is currently trading at $50. There was a further increase of ~6% this quarter.
iShares Core S&P 500 ETF (IVV): A sizable stake in IVV was built over the 2017-2018 timeframe at prices between ~$245 and ~$295. It was sold over two quarters through Q1 2021 at prices between ~$325 and ~$400. The seven quarters through Q4 2022 had seen the stock rebuild at prices between ~$359 and ~$477. The stock is now at ~$456 and the stock is at 5.31% of the portfolio. There was a decrease of ~11% during the first quarter of 2023 and a similar increase during the last two quarters.
Note: a much smaller stake in IVV was part of the portfolio during the 2012-16 timeframe.
Procter & Gamble (PG): PG is currently the largest individual stock position at 4.23% of the portfolio. It established in the second half of 2020 with prices between ~$120 and $144. The first half of 2021 saw a ~80% increase in the stock at prices between ~$124 and ~$139. The two quarters to Q1 2022 also saw a 45% increase with prices between ~$139 and $164. Q4 2022 saw a ~25% decline with prices between ~$124 and ~$154. The stock is currently trading at ~$150. The last two quarters saw small decreases while this quarter saw a small increase of ~4%.
Coca Cola (IS): The four quarters to Q2 2021 saw a share of 8.2 million KO shares built at prices between ~$45 and $56. This was followed by a 40% increase in shares in Q1 2022 at prices between ~$58 and ~$63. There was a ~25% selloff during Q4 2022 at prices between ~$54 and ~$64. The stock is currently trading at ~$57.40, and the stock is quite large at ~3% of the portfolio. This quarter saw an increase of 10%.
Note: Much smaller holdings in these two positions were part of the portfolio during the decade to 2016.
Costco Wholesale (COST): 2.69% of the COST portfolio shares were built over the four quarters through Q2 2021 at prices between ~$305 and ~$395 and the stock is currently trading at ~$581. There was a 30% increase in shares in Q1 2022 with prices between ~$477 and ~$577. Q4 2022 saw a ~22% decrease with prices between ~$453 and ~$540. This was followed by a decline of ~15% in the last two quarters. This quarter saw a small increase of ~3%.
PepsiCo (PEP): The four quarters to Q2 2021 saw a share of 2.7 million shares built at prices between ~$129 and ~$148. This was followed by a 55% rise in the stock over the two quarters to Q1 2022 at prices between ~$150 and $176. There was a ~25% decline during Q4 2022 with prices between ~$160 and ~$186. The last two quarters also saw declines while this quarter saw an increase of ~4%. The stock is now at ~$167 and the shares are at 2.74% of the portfolio.
Note: Much smaller holdings in these two positions were part of the portfolio during the decade to 2016.
Walmart (WMT): The 2.60% WMT position was purchased over four quarters through Q2 2021 at prices between ~$119 and ~$152. Q4 2021 saw shares sell off ~45% at prices between ~$135 and ~$151. In the first half of 2022 there was a two-thirds increase with prices between ~$118 and ~$160. The last four quarters saw a 48% selloff at prices between $123 and $157. The stock is now at $155. There was a small increase of ~5% this quarter.
McDonald’s (MCD): MCD is a 2.36% portfolio position first built over the four quarters to Q2 2021 at prices between ~$184 and ~$237. The two quarters to Q1 2022 saw another ~55% increase in the stock at prices between ~$222 and ~$270. There was a ~25% decline during Q4 2022 with prices between ~$233 and ~$278. The last two quarters saw further declines, while this quarter saw an increase of ~4%. The stock is now at $279.
CVS Health (CVS): CVS is a 1.22% portfolio stock built primarily through Q2 2022 at prices between ~$89 and ~$107 and the stock is currently trading well below that range at $68.26. There was a decrease of ~20% over the two quarters to Q1 2023. The last two quarters saw an increase of ~15%.
Abbott Laboratories (ABT), Becton, Dickinson (BDX), Chipotle Mexican Grill (CMG), Cisco Systems (CSCO), Colgate-Palmolive (CL), Comcast (CMCSA), Estee Lauder (it), HCA Healthcare (HCA), iShares iBOXX Inv. Grd. ETF (LQD), intuitive surgery (ISRG), iShares MBS ETF (MBB), Kimberley-Clark (KMB), Kroger Co . (cf.), Meta Platforms (META), Mondelez International (MDLZ), Merck Inc.MRK), McKesson (MCK), Drink Monster (MNST), Stryker (SYK), and Target (TGT): These small stocks (less than ~1.25% of the portfolio each) rose this quarter.
Stock reduction:
SPDR S&P 500 ETF (SPY): A small position in SPY was first established in the first quarter of 2006. An amended filing in the fourth quarter of 2007 showed a whopping 40% of the 13F portfolio (~12 million shares) held in the range 140s price high. Position size peaked at ~21 million shares by 2011. The decade to 2020 had seen the position reduced to 3.7 million shares through small sales in most quarters. The first half of 2021 saw a further reduction of ~45% with prices between ~$370 and ~$430. This was followed by a ~20% selloff during Q3 2022 with prices between ~$357 and ~$430. There was a further decline of ~16% last quarter with prices between ~$404 and ~$443. SPY is now trading at $454 and the stock is at 2.57% of the portfolio. This quarter also saw a decrease of ~4%.
Johnson & Johnson (YNJ): 2.56% of JNJ shares was a small position in their first 13F filing in Q4 2005. The stock has fluctuated. The current position was built over four quarters to Q2 2021 with prices between ~$137 and ~$171. The two quarters to Q1 2022 had seen the stock rise 55% with prices between ~$155 and $180. Q4 2022 saw a sell-off of ~25% at prices between ~$160 and ~$180. The last two quarters saw another reduction of ~25% with prices between ~$151 and ~$175. The stock is currently trading at $150.
Vanguard FTSE Emerging Markets ETF (VWO): VWO is 1.42% of the portfolio shares. It was first purchased in 2009. The position size peaked at over 115 million shares in 2014. This compares to 8.47 million shares currently. The last activity follows. 2020 saw a 45% selloff at prices between ~$31 and ~$50 while Q3 2021 saw a doubling of the stock at prices between ~$49 and ~$53. Q2 2022 saw a reduction by a third with prices between ~$40.50 and ~$48. This was followed by a sell-off of ~40% during Q1 2023 with prices between ~$38.50 and ~$43. VWO is currently trading at $40.82. This quarter saw another reduction of ~25% with prices between ~$39 and ~$43.
Starbucks (SEX): 1.40% of SBUX stock built over the four quarters to Q2 2021 at prices between ~$74 and ~$118. The two quarters to Q1 2022 saw the stock rise another 45% with prices between ~$79 and $117. The stock is currently trading at ~$104 It has been down ~18% over the two quarters through Q1 2023. Last quarter it was up ~9% while this quarter it was down ~7%.
Alphabet (GOOG): The 1.25% stake in GOOG saw a ~210% increase last quarter at prices between ~$87 and ~$109. The stock is currently trading at $138. There was a ~15% decline this quarter and that was followed by a ~20% decline this quarter with prices between ~$117 and ~$139.
Visa Inc. (V): 1.18% Visa stock saw a ~18% rise during 2023Q1 at prices between ~$207 and ~$231 and is now at ~$250. This quarter saw a decrease of ~16%.
AbbVie (ABBV), Reservations Holdings (BKNG), Boston Scientific (BSX), Microsoft (MSFT), PDD Holdings (PDD), PayPal Holdings (PYPL), and Veeva Systems (VEEV): These very small holdings (less than ~1% of the portfolio each) were reduced during the quarter.
The table below highlights the changes in Bridgewater Associates’ 13F holdings in Q3 2023:
Ray Dalio – Bridgewater Associates’ Q3 2023 13F Query/Forest Comparison Report (John Vincent (author))
