Ray Dalio and Co. have again reported significant portfolio reductions to their Asian holdings. They also reported increasing their Brazilian and Taiwanese holdings, which appears to be an attempt at sticking to their original investment strategy, while at the same time limiting the potential damages that could arise from a political black swan event. Trump recently rattled investors back in September when he announced that he was considering delisting Chinese companies from U.S. stock exchanges, so Bridgewaters reaction isn’t all that surprising.
His frustration was clearly demonstrated on Linkedin last week in his recent blog post titled, “The World Has Gone Mad and the System Is Broken”, but whether or not this is just him trying to save face in light of the under-performance of his fund may not be as important as what he is trying to tell the investment community. As we all know, money talks, and Dalio has certainly spoken loud and clear with this 13f filing. When a man of his caliber makes a statement such as this, it speaks volumes, whether or not he is right or wrong.
In the 3rd quarter, Bridgewater Associates, LP reported AUM of $11,382,173,000, down 11% compared to Q2. They reduced Vanguard FTSE Emerging Markets ETF by 21%, iShares Core MSCI Emerging Markets ETF, by 26%, iShares MSCI Emerging Markets ETF by 51%, iShares iBoxx $ Investment Grade Corporate Bond ETF by 12%, while also adding iShares MSCI Taiwan ETF. and increasing iShares MSCI Brazil ETF by 35%
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