Assets Under Management AUM

Ray Dalio retires. Here are his top 5 stock market bets.

Source: FabreGov /

Bridgewater Associates Ray Dalio grabbed headlines after announcing he would cede control of the $150 billion hedge fund. The 73-year-old founder launched his hedge fund in 1975 from a two-bedroom apartment in New York and more than cemented his place as one of the most successful fund managers of all time. Forbes estimates his career has earned him a net worth of $19.1 billion.

Dalio also announced that the hedge fund succession plans. Veteran co-CIOs Bob Prince and Greg Jensen, co-CEO Nir Bar Dea and Mark Bertolini will assume portfolio manager responsibilities. Dalio added: “I hope that until my death I will continue to be a mentor, an investor and a member of the board of directors of Bridgewater, because me and they like to do these things together. It’s a dream come true.

The veteran fund manager began his transition plan as early as 2010 but struggled to choose the right successors. Now that the plan is complete, Dalio will be free to focus on other projects, such as philanthropy.

Ray Dalio bets big on these five stocks

Meanwhile, Bridgewater has had a mixed year. The hedge fund’s Pure Alpha strategy has returned 34.6% this year as of September 30, while the All Weather strategy is down 27.2%.

Of the $150 billion in assets under management (AUM), $23.59 billion is invested in 13F holdings. This figure fell by $24.8 billion in the previous quarter. Additionally, Bridgewater operates as a medium to long-term investor and has an average holding period of 4.75 quarters for shares in its 13F portfolio. For stocks in the fund’s top 10 positions, it has an average holding period of 13.5 quarters.

Let’s take a look at the top five hedge fund positions:

  1. Overseer and bet (NYSE:PG): 6.74 million shares. Bridgewater sold 76,443 shares of PG during the second quarter.
  2. Johnson & Johnson (NYSE:JNJ): 4.33 million shares. Bridgewater sold 12,369 shares of JNJ during the second quarter.
  3. iShares Core MSCI Emerging Markets ETF (NYSEARC:IEMG): 15.30 million shares. Bridgewater sold 652,408 shares of IEMG during the second quarter.
  4. SPDR S&P 500 ETF Trust (NYSEARC:TO SPY): 1.84 million shares. Bridgewater sold 39,972 shares of SPY during the second quarter.
  5. Coca Cola (NYSE:KO): 10.82 million shares. Bridgewater sold 1.11 million shares of KO during the second quarter.

At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication guidelines.

Eddie Pan specializes in institutional investments and insider trading. He writes for InvestorPlace’s Today’s Market team, which focuses on the latest news on popular stocks.