Top Holdings of the World’s Most Successful Hedge Fund Manager

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Ray Dalio is the world’s most successful hedge fund manager. While not as well known as some other institutional investors like John Paulson, George Soros and Jim Simons, Dalio has found more success than his counterparts over the last year as the Bridgewater Pure Alpha fund generated $13.8 billion over the 12 months. In contrast, John Paulson, best known for his call on the American real estate bubble, lost investors almost $10 billion in 2011, a 51% loss. Paulson & Co. still remains the third most successful fund, generating net gains of $22.6 billion since its inception in 1994. In contrast the Bridgewater Pure Alpha hedge fund has realized net returns of $35.8 billion. George Soros’ Quantum Endowment Fund, which at one point last year held 75% in cash, has cumulative net gain of $31.2 billion since 1973.

Bridgewater utilizes a macro-based strategy to find mispriced opportunities in the market. Below are some of Ray Dalio’s top $10 million+ holdings out of the 262 stocks currently owned by Bridgewater Associates.

Dell (NASDAQ: DELL): investment of $26.7 million
Dell has been running a more efficient business model despite stagnating revenues as hardware sales fail to gain traction. As a result, Dell will start focusing on software as well, making a move to purchase AppAssure, a provider of data backup solutions.

HollyFrontier (NYSE: HFC): investment of $22.3 million.
HollyFrontier is an independent crude oil refining company with wholesale marketing of refined liquids operations. The company owns five refineries in the eastern United States, which have a capacity to process nearly 445,000 barrels per day.

Watson Pharmaceutical (NYSE: ACT): investment of $19.5 million.
Based in Parsippany, N.J., Watson Pharmaceutical is the fifth largest player in its space, developing, manufacturing, and marketing a wide selection of band name and generic drugs. Among its most notable products are medications such as Oxycodone and Nicotine Polarcillex Gum.

International Paper (NYSE: IP): investment of $16.2 million.
International Paper is a global leader in the paper and packaging industry with diverse international operations. I recently wrote a post, 5 Reasons to Invest in International Paper, which argues for the bull case on the company. Surprisingly, I wrote this piece even before I looked at the 13F for Bridgewater.

Cliffs Natural Resources (NYSE: CLF): investment of $17.2 million.
Cliffs Natural Resources is the largest producer of iron ore pellets in North America. With 10 iron ore mines owned across the U.S and strategic interests in international properties, Cliffs is a powerful player in the ore and metallurgic coal mining business.

Ray Dalio has been actively investing even before he reached his teens. Investors who practice a coat-tailing strategy would be advised to check out the Bridgewater 13F filing to determine which investments would work best in the context of their own personal portfolios.


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