Ray Dalio’s Bridgewater fund dumped GameStop and AMC final quarter – whereas Jim Simons’ RenTech guess on Tesla and Mattress Tub & Past

7 months ago 3 min read

Bridgewater Associates and Renaissance Applied sciences parted methods on fashionable shares final quarter.
Bridgewater, based by Ray Dalio, offered its stakes in GameStop and AMC Leisure.

Two of the world’s main hedge funds parted methods on a few of the market’s trendiest names within the first quarter, suggesting they might disagree on whether or not there’s nonetheless cash to be made with meme shares.

Bridgewater Associates offered its stakes in GameStop and AMC Leisure, whereas Renaissance Applied sciences boosted its guess on Tesla inventory and snapped up Mattress Tub & Past shares.

Bridgewater, based by billionaire investor Ray Dalio, practically tripled its GameStop and AMC holdings within the fourth quarter of 2022. It ended the 12 months with $712,000 of GameStop shares and $261,000 of AMC shares.

Nevertheless, neither of the meme shares seem within the hedge fund’s newest portfolio replace, suggesting it exited each holdings within the first quarter.

RenTech – based by former MIT math professor and Chilly Conflict codebreaker Jim Simons – ramped up its guess on Elon Musk’s Tesla by 18% to 4 million shares final quarter. The purchases, coupled with a pointy surge within the electric-vehicle maker’s inventory value, lifted the worth of RenTech’s stake by 99% to $835 million as of March 31.

Notably, RenTech supercharged its Tesla guess within the fourth quarter of final 12 months, rising it from 1,400 shares to three.4 million. It first invested in Musk’s automaker in 2013, and owned the equal of 59 million shares in 2019 — a place value about $10 billion as we speak.

Simons’ fund additionally pounced on a meme inventory final quarter. It purchased practically 1.8 million shares of BBBY — a stake value $749,000 on the finish of March.

BBBY’s inventory value surged to over $35 on the peak of the meme-stock increase in January 2021. But it surely plunged beneath $1 by February of this 12 months, because the homeware retailer’s issues mounted. The corporate filed for chapter in April, and its inventory was delisted earlier this month.

RenTech is a quantitative hedge fund that always strikes out and in of positions, and depends on algorithms to find out lots of its trades. Because of this, it could have offered its BBBY place properly earlier than the retailer’s collapse.

Bridgewater’s greatest single-stock positions on the finish of March included Procter & Gamble ($735 million), Johnson & Johnson ($556 million), and greater than $500 million value of each Coca-Cola and PepsiCo shares. Its US inventory portfolio was valued at $16.4 billion in complete, down from $18.3 billion three months earlier.

The highest holdings in RenTech’s $75 billion inventory portfolio on the finish of March included Novo-Nordisk ($1.7 billion), Amazon ($930 million), and Airbnb ($753 million). Notably, the agency slashed its Apple stake by greater than 99%, from 7.1 million shares value $922 million on December 31, to fewer than 10,000 shares value $1.6 million three months later.

It is value emphasizing that quarterly portfolio updates solely present a snapshot of a fund’s holdings on a selected day. Additionally they exclude non-stock property, personal and abroad investments, and shares offered quick. Because of this, they do not all the time paint a full and correct image of a agency’s investments.