Bridgewater Pares Some ETF Stakes, Maintains Others

Ray Dalio’s Bridgewater Associates, one of the world’s largest hedge funds, did some minor tinkering to its positions in exchange traded funds during the fourth quarter.

Bridgewater pared its stake in the SPDR S&P 500 ETF (NYSEArca: SPY), the world’s largest ETF, by 1.91 million shares during the fourth quarter, bring its SPY position to “15.4 million shares valued at $3.16 billion. The value of the holding was reduced by $245.9 million, the biggest decrease among existing stakes,” according to Bloomberg.

SPY is still Bridgewater’s second-largest equity position behind the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO). Bridgewater added to its position in VWO, the largest emerging markets ETF by assets, during the fourth quarter.

Bridgewater’s VWO stake at the end of 2014 was 116.2 million shares valued at over $4.6 billion. That is an increase of 5.32 million shares from the third quarter, meaning VWO represented 37.1% of Bridgewater’s equity portfolio at the end of 2014, up from 36% at the end of the third quarter. [Hedge Fund Love These ETFs]

While boosting its VWO exposure, Bridgewater pared its position in VWO’s chief rival, the iShares MSCI Emerging Markets ETF (NYSEArca: EEM). Bridgewater sold 1.52 million EEM shares during the fourth quarter, bringing its stake in the second-largest emerging markets ETF to 78.5 million shares, or 24.6% of the firm’s equity portfolio.