- Latest 13F filings present that Ray Dalio’s Bridgewater Associates bought a place in GameStop (NYSE:GME) inventory
- The hedge fund additionally bought a large place in rival meme inventory AMC Leisure (NYSE:AMC)
- This might sign to the market that the hedge fund is advocating for a risk-on method to equities
It’s 13F submitting season once more — certainly one of my favourite intervals of every quarter. Other than earnings, 13F filings present one other catalyst for traders to leap on to assist their very own particular person theses on given shares. For traders in GameStop (NYSE:GME), there’s really some excellent news on this regard right now.
The world’s largest hedge fund, Bridgewater Associates, has introduced a stake in each GameStop and AMC Leisure (NYSE:AMC) throughout the previous quarter. Reportedly, the stakes in each of those firms had been value just below $700 million apiece.
GME inventory and AMC inventory are two of the very best danger equities available in the market, so this transfer is attention-grabbing. Maybe Bridgewater is viewing these firms as high-leverage “option-like” shares to purchase to achieve publicity to upside rallies. Regardless of the case, it’s clear that Ray Dalio is getting extra bullish on the near-term prospects of the market.
Mr. Dalio seems to have gotten the short-term course of the market proper, with most main indices surging in right now’s session. That stated, let’s dive into a few of the different strikes Bridgewater made and what the importance of those meme inventory bets are for traders.
Ray Dalio’s Bridgewater Buys GME Inventory and Others
Curiously, these common retail favorites weren’t the one ones Ray Dalio bought this previous quarter. The hedge fund disposed of its place in Tesla (NASDAQ:TSLA), whereas including publicity to Airbnb (NASDAQ:ABNB) and Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B).
It seems the market is trying to make sense of those strikes right now. On the one hand, the risk-on bets for AMC and GameStop are in distinction to the hedge fund’s gross sales of high-growth electrical automobile (EV) maker Tesla. Moreover, the acquisition of Berkshire Hathaway shares might sign the hedge fund is seeking to diversify towards defensiveness proper now. And maybe the Airbnb addition displays a value-oriented decide on this beaten-up market.
Hedge funds are inventory pickers, they usually decide numerous shares for various causes. Mr. Dalio clearly sees one thing the market doesn’t with many of those shares. Certainly, there are a lot of traders who might disagree with Bridgewater’s current strikes this previous quarter.
I believe time will show whether or not Bridgewater made the fitting strikes or not. Dalio and his group clearly know what they’re doing, they usually appear to be working with a distinct mindset than the general market proper now. Maybe this technique will yield higher returns within the close to time period. We’ll see.
Picture Credit score: Cottonbro; Pexels; Thanks!
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