Bridgewater Associates, the hedge fund founded by billionaire Ray Dalio, made a significant move in Q4 last year, increasing its stake in chipmaker Nvidia (NVDA) by a staggering 458%. This increase brought their total holdings in Nvidia to 268,489 shares, valued at $133 million by the end of December. Nvidia, acclaimed as the world's most valuable chipmaker, has seen a remarkable 47% increase in its share value this year and recently surpassed Alphabet (GOOGL) in market capitalization, becoming the third-largest U.S. company with a valuation over $1.8 trillion.
In addition to its considerable investment in Nvidia, Bridgewater also expanded its portfolio with other major players in the tech industry. The hedge fund purchased around 500,000 new shares in Alphabet, bringing its total to 2 million shares valued at $286 million. Furthermore, Bridgewater increased its stake in Meta Platforms (META) to 666,059 shares and made a new, albeit smaller, investment in Apple (AAPL) with 1,109 shares. The fund also maintained its exposure to Microsoft (MSFT) at 197,732 shares.
Market Overview:
-Bridgewater Associates boosts Nvidia stake by 458%, exceeding $130 million.
-Exposure to Alphabet, Meta, and Eli Lilly also increased in Q4 2023.
-Move reflects optimism on growth stocks despite recent market volatility.
Key Points:
-Bridgewater's significant investment in Nvidia highlights its faith in AI chipmaker's future.
-Increased positions in other Magnificent Seven tech stocks suggest broader growth outlook.
-Eli Lilly purchase indicates interest in healthcare trends like weight-loss drugs.
Looking Ahead:
-Impact of Bridgewater's bets on stock prices and investor sentiment.
-Scrutiny of other big investors' holdings and potential follow-up investments.
-Monitoring of growth stock performance and broader market trends.
These investment decisions, disclosed in 13-f filings, provide a rare glimpse into the portfolios of secretive funds, despite being backward-looking and not reflective of current holdings or short positions. Alphabet shares have risen by 4% this year, and Meta’s shares have seen a 33% increase. In contrast, Tesla (TSLA) and Apple (AAPL) have experienced declines of 24.6% and 5%, respectively, this year.
Bridgewater's aggressive positioning in the tech sector, particularly in Nvidia, reflects a confident outlook on AI and technology-driven markets. The fund also expanded its holdings in the pharmaceutical sector, adding 255,619 new shares of Eli Lilly (LLY), one of the manufacturers of popular weight-loss drugs, bringing its total to 317,586 shares. This diversification in Bridgewater's portfolio indicates a strategic approach to capitalizing on various high-performing sectors in the market.
