By Carolina Mandl
Bridgewater Associates Expands Banking Portfolio
NEW YORK (Reuters) – Bridgewater Associates added shares of big banks to its portfolio in the third quarter, as securities filings revealed, ahead of a rally that followed Donald Trump’s victory in the U.S. presidential election.
The hedge fund founded by Ray Dalio ended September with larger positions in:
- Goldman Sachs
- Morgan Stanley (NYSE:MS)
- Wells Fargo (NYSE:WFC)
- Bank of New York Mellon (NYSE:BK)
- Citigroup (NYSE:C)
Additionally, Bridgewater built a new position in Bank of America.
Expectations of a Trump victory leading to looser banking regulations lifted the sector recently. The KBW Bank Index increased roughly 17% since the end of September and surged nearly 12% following the Nov. 5 vote.
However, it remains unclear if Bridgewater maintained its positions past September 30, which is the cutoff date for the 13-F filings. While these filings don’t reveal current holdings, they provide insights into the portfolios of often-secretive market players like hedge funds and sovereign wealth funds.
Bridgewater’s largest position by dollar value was in Wells Fargo, with a stake worth $79.6 million at the end of September.
Other hedge funds similarly betting on the banking sector included Dan Sundheim's D1 Capital Partners (WA:CPAP), which reported a new $174.9 million stake in Bank of America as of September 30.
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