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September 20, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Ray Dalio’s hedge fund embraces Alibaba, drops Facebook shares

Ray Dalio

Where has Ray Dalio’s Bridgewater Associates been putting its money lately? According to an analysis by Business Insider of a second quarter regulatory filing, the world’s largest hedge fund is focusing on the far side of the Pacific while selling off its shares in Mark Zuckerberg’s social media empire.

During the second quarter, the $150 billion Bridgewater purchased 84,629 shares of Alibaba, the Chinese e-commerce giant, for $15.7 million. Business Insider estimated the purchase came to roughly $185.52 per share. Dalio, who has been involved in the Chinese markets since he was invited to teach classes on global financial markets in 1984, was in China earlier this year to promote a translated version of his book “Principles,” which has been a bestseller on the Chinese online book sites JD.com and Dangdang.com. During that visit, he commended the Chinese government’s economic initiatives, stating, “My understanding is that the leadership is committed to financial market reforms and opening up to foreign investment.”

In addition to the Alibaba stock purchase, Bridgewater has also acquired a $31.3 million stake in the engine maker Cummins and a $14.4 million stake in Walmart. Bridgewater has also sold off 76 percent of its holdings in Facebook, but it has not completely unfriended the company – the hedge fund still holds $9.37 million in shares.