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Dalio’s Bridgewater: Stock Exits, Cuts, and Additions in Q1

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Dalio’s steel stock exits

For Ray Dalio’s Bridgewater Associates, the notable exits during the first quarter included U.S. Steel Corporation (X). The fund sold all of the 3.67 million shares in U.S. Steel Corporation to completely exit the position. U.S. Steel Corporation is nearing its 52-week low level. China has started retaliating against the increased tariffs. Bridgewater Associates also exited its position in Reliance Steel & Aluminum (RS) and Steel Dynamics (STLD).

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Cleveland-Cliffs and Nucor

Bridgewater reduced its stake in Cleveland-Cliffs (CLF) 40% from 3.1 million shares to 1.88 million shares. Cleveland-Cliff’s stock price has increased ~30% in the first quarter and outperformed its peers and the broader markets. During the same period, the S&P 500 (SPY) and the Dow Jones Industrial Average Index (DIA) returned 13% and 11.1%, respectively.

Bridgewater increased its stake in Nucor (NUE) 598% during the first quarter.

Bridgewater’s stake in mining companies

As far as mining companies are concerned, Bridgewater added to its stake in Vale (VALE). The increased stake came amid the issues surrounding the miner. One of Vale’s dams collapsed on January 25 and killed ~300 people. Due to the resulting production decline, iron ore prices increased. The higher prices benefited Vale’s peers including BHP Billiton (BHP) and Rio Tinto (RIO). Bridgewater also has a stake in BHP Billiton and Rio Tinto. During the first quarter, Bridgewater reduced its stake in Rio Tinto and BHP Billiton 11% and 6.8%, respectively.

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