Bridgewater Associates, the mega hedge fund founded by Ray Dalio (Trades, Portfolio), disclosed in a regulatory portfolio filing that its top buys during the third quarter included a new position in DiDi Global Inc. (DIDI, Financial), as well as increased bets on Alibaba Group Holding Ltd. (BABA, Financial), Pinduoduo Inc. (PDD, Financial), JD.com Inc. (JD, Financial) and The Home Depot Inc. (HD, Financial).
The Greenwich, Connecticut-based firm develops insights and designs strategies to deliver value through its clients regardless of the economic environment. Bridgewater applies Dalio’s key principles, which include employing radical truth and transparency, encouraging open and honest dialogue and allowing the best thinking to prevail.
As of Sept. 30, Bridgewater’s $18.26 billion equity portfolio contains 683 stocks, with 117 new positions and a turnover ratio of 24%. Excluding exchange-traded-fund holdings, the firm’s top three sectors in terms of weight are consumer staples, consumer discretionary and health care, representing 24.36%, 17.11% and 15.49% of the equity portfolio.
DiDi Global
Bridgewater purchased 8,990,211 shares of DiDi Global (DIDI, Financial), giving the position 0.38% equity portfolio weight. Shares averaged $9.52 during the third quarter.
GuruFocus ranks the Chinese rideshare company’s financial strength 5 out of 10 on the back of cash-to-debt ratios outperforming just over 53% of global competitors despite debt-to-equity ratios outperforming more than 63% of global software companies.
Alibaba
Bridgewater added 1,871,172 shares of Alibaba (BABA, Financial), expanding the position by 131.86% and its equity portfolio by 1.52%.
Shares of Alibaba averaged $182.30 during the third quarter; the stock is significantly undervalued based on Monday’s price-to-GF Value ratio of 0.43.
GuruFocus ranks the Chinese e-commerce giant’s profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and an operating margin that outperforms more than 78% of global competitors despite declining approximately 17% per year on average over the past five years.
Gurus with holdings in Alibaba include Charlie Munger (Trades, Portfolio)’s Daily Journal Corp. (DJCO, Financial), PRIMECAP Management (Trades, Portfolio), Baillie Gifford (Trades, Portfolio) and Dodge & Cox.
Pinduoduo
Bridgewater purchased 802,394 shares of Pinduoduo (PDD, Financial), increasing the position by 71.81% and its equity portfolio by 0.40%.
Shares of Pinduoduo averaged $97.66 during the third quarter; the stock is significantly undervalued based on Monday’s price-to-GF Value ratio of 0.52.
The Shanghai-based company provides a platform for buyers with value-for-money merchandise and interactive shopping experiences. GuruFocus ranks the company’s financial strength 6 out of 10 on the back of a strong Altman Z-score of 5.78 and cash-to-debt ratios that outperform more than 85% of global competitors despite equity-to-asset ratios underperforming over 52% of global cyclical retail companies.
JD.com
Bridgewater purchased 802,281 shares of JD.com (JD, Financial), increasing the position by 67.58% and its equity portfolio by 0.32%.
Shares of JD.com averaged $73.86 during the third quarter; the stock is significantly overvalued based on Monday’s price-to-GF Value ratio of 1.30.
GuruFocus ranks the Beijing-based e-commerce company’s financial strength 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a strong Altman Z-score of 4.5 and debt ratios that are outperforming more than 80% of global competitors.
Home Depot
Bridgewater purchased 189,843 shares of Home Depot (HD, Financial), increasing the position by 135.06% and its equity portfolio by 0.34%.
Shares of Home Depot averaged $328.29 during the third quarter; the stock is modestly overvalued based on Monday’s price-to-GF Value ratio of 1.18.
GuruFocus ranks the Atlanta-based home furnishings retailer’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and an operating margin that has increased approximately 0.70% per year on average over the past five years and outperforms more than 88% of global competitors.
