- Current 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 strategy to equities
It’s 13F submitting season once more — considered one of my favourite durations of every quarter. Other than earnings, 13F filings present one other catalyst for buyers to leap on to assist their very own particular person theses on given shares. For buyers in GameStop (NYSE:GME), there’s truly some excellent news on this regard at this time.
The world’s largest hedge fund, Bridgewater Associates, has announced a stake in each GameStop and AMC Leisure (NYSE:AMC) in the course of the previous quarter. Reportedly, the stakes in each of those corporations had been value just below $700 million apiece.
GME inventory and AMC inventory are two of the very best threat equities available in the market, so this transfer is fascinating. Maybe Bridgewater is viewing these corporations 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 at this time’s session. That mentioned, let’s dive into a number of the different strikes Bridgewater made and what the importance of those meme inventory bets are for buyers.
Ray Dalio’s Bridgewater Buys GME Inventory and Others
Curiously, these in style 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 at this time. 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 could sign the hedge fund is seeking to diversify towards defensiveness proper now. And maybe the Airbnb addition displays a value-oriented choose on this beaten-up market.
Hedge funds are inventory pickers, they usually choose numerous shares for various causes. Mr. Dalio clearly sees one thing the market doesn’t with many of those shares. Certainly, there are various buyers who could disagree with Bridgewater’s latest strikes this previous quarter.
I believe time will show whether or not Bridgewater made the best strikes or not. Dalio and his workforce clearly know what they’re doing, they usually appear to be working with a unique mindset than the general market proper now. Maybe this technique will yield higher returns within the close to time period. We’ll see.
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