Bridgewater's Q3 pursuit of the AI trend: Establishing positions in Nvidia and Broadcom, while "big consumer" stocks remain the ballast.

Zhitong App has learned that Bridgewater Associates, the world's largest hedge fund, has submitted its third-quarter holdings report (13F) to the U.S. Securities and Exchange Commission (SEC) as of September 30, 2023.

According to the statistics, Bridgewater Associates' total market value of holdings in the third quarter reached $16.5 billion, a slight increase of nearly 2% compared to the previous quarter's total market value of $16.2 billion. Bridgewater added 130 stocks to its portfolio in the third quarter, while increasing its holdings in 388 stocks. At the same time, Bridgewater reduced its holdings in 215 stocks and completely exited 86 stocks. Among them, the top ten holdings of Bridgewater accounted for 33.77% of the total market value.

Among the top ten major holdings of Bridgewater in the third quarter, most of them are emerging market index funds and major consumer stocks in the U.S. market, most of which were increased by Bridgewater in Q3. The top ten major holdings of Bridgewater have remained relatively unchanged this year, especially in the "consumer" sector. Among them, the iShares Core MSCI Emerging Markets ETF (IEMG.US) continued to rank first, with a holding of approximately 19.18 million shares, a holding market value of approximately $913 million, and a portfolio proportion of 5.52%, an increase of 6.98% compared to the previous quarter.

The iShares S&P 500 ETF (IVV.US) ranked second, with a holding of approximately 2.04 million shares, a holding market value of approximately $878 million, and a portfolio proportion of 5.31%, a slight increase of 1.55% compared to the previous quarter.

Procter & Gamble (PG.US) ranked third, with a holding of approximately 4.8 million shares, a holding market value of approximately $700 million, and a portfolio proportion of 4.23%, a slight increase of 4% compared to the previous quarter.

Coca-Cola (KO.US) ranked fourth, with a holding of approximately 9 million shares, a holding market value of approximately $504 million, and a portfolio proportion of 3.04%, an increase of 9.51% in holdings compared to the previous quarter.

Costco Wholesale (COST.US) ranked fifth, with a holding of approximately 830,000 shares, a holding market value of approximately $468 million, and a portfolio proportion of 2.83%, a slight increase of 2.53% in holdings compared to the previous quarter.

Among the top ten major holdings, Bridgewater's sixth to tenth major holdings are PepsiCo (PEP.US), Walmart (WMT.US), SPDR S&P 500 ETF (SPY.US), Johnson & Johnson (JNJ.US), and McDonald's (MCD.US). Among them, Bridgewater reduced its holdings in SPDR S&P 500 ETF by 3.84% compared to the previous quarter, and reduced its holdings in Johnson & Johnson by 14.37%. The remaining stocks received slight increases in holdings by Bridgewater. From the perspective of changes in the portfolio ratio, the top five buy targets are: Schlumberger (SLB.US), Broadcom (AVGO.US), Netflix (NFLX.US), Meta Platforms (META.US), and Cisco (CSCO.US). Bridgewater, which has always favored US index funds and the consumer sector, made a rare significant increase in its holdings of technology stocks in the third quarter. Among them, social media giant Facebook and its subsidiary Meta Platforms jumped to the 18th largest holding of Bridgewater, with an increase of up to 86%.

Bridgewater also made rare moves in chasing global stock market hotspots in the third quarter, such as the investment frenzy around AI in the global stock market this year. Broadcom, a leader in the RF chip and communication field and one of the winners in the AI sector, became a new holding of Bridgewater in the third quarter, accounting for 0.27% of its investment portfolio. The stock price of this technology giant has risen by as much as 70% this year. NVIDIA, a leader in the AI chip field, also became a new holding of Bridgewater in Q3, with a holding market value of approximately $20.93 million, accounting for 0.13% of its investment portfolio. In addition, Bridgewater also made a significant purchase of 94,950 shares of streaming media giant Netflix in Q3, with a holding market value of approximately $35.85 million, accounting for 0.22% of its investment portfolio. Cisco, the pioneer of the Internet era and the world's largest Internet equipment manufacturer, also saw a significant increase in holdings by Bridgewater in Q3.

The top five sell targets for Bridgewater in the third quarter include: Johnson & Johnson, Vanguard FTSE Emerging Markets ETF (VWO.US), Visa (V.US), Starbucks (SBUX.US), and SPDR S&P 500 ETF (SPY.US). In the third quarter, Bridgewater, which has always favored the consumer sector, significantly reduced its holdings of US consumer giants Johnson & Johnson and Starbucks. Visa, the international credit card brand known as the "barometer of US consumption," also experienced a significant reduction in holdings by Bridgewater.