startups

The world’s largest hedge fund loads up on Alibaba


caption
Ray Dalio, founder, co-chief investment officer and co-chairman of Bridgewater Associates, speaks at the 2017 Forbes Under 30 Summit in Boston, Massachusetts, U.S. October 2, 2017.
source
Brian Snyder/Reuters
  • Bridgewater Associates, the world’s largest hedge fund
    that oversees $150 billion in assets under management, bought
    $15.7 million worth of Alibaba
    shares during the second quarter, regulatory filings
    show.
  • Alibaba is one of the stocks included in the
    “FAANG+BAT” basket.
  • Watch
    Alibaba trade in real time here
    .

Bridgewater Associates, the $150 billion hedge fund founded
by Ray Dalio, bought 84,629 shares of Alibaba
in the second quarter, worth $15.7 million, according to
regulatory documents filed Tuesday. A back of the envelope
calculation shows the stake was established at an average price
of $185.52.

Alibaba is one of the market’s most heavily traded tech
stocks and part of the “FAANG+BAT” basket, which
also includes Facebook, Amazon, Apple, Netflix, Google, and
Chinese tech giants Baidu and Tencent.

Bridgewater’s buying of Alibaba shouldn’t come as a
surprise. Last September, the hedge fund
launched a big investment fund in China
as it was granted
rare access to trade in local financial markets.

In a
LinkedIn post
from March, Dalio wrote that an escalating
tit-for-tat trade war would be a reason to “worry.” But this
investment is a way for Dalio to gain exposure to China without
having to worry about the impact of a trade war with China.
That’s because the e-commerce giant is responsible for about 85%
of e-commerce sales in China – which helps provide insulation
from the trade spat.

Alibaba shares gained 4% in the second quarter despite
Trump’s tariff trade spat with China. However they slumped 7%
since July as investors have begun to rotate out of the
“FAANG+BAT” group.

Dalio’s other new investments disclosed in the filing
include a $31.3 million stake in Cummins, a $14.4 million stake
in Walmart, and a 76% decrease in its Facebook holdings – now
worth $9.37 million.

Alibaba

source
Markets Insider





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