Filing Reveals Bridgewater's Largest Positions are ETFs

EEM ISHARES TR $1,546.6 12.6%
VWO VANGUARD INTL EQUITY INDEX F $889.7 26.0%
IEMG ISHARES INC $525.7 7.3%
KR KROGER CO $42.3 0.3%
EWY ISHARES INC $34.1 0.3%
M MACYS INC $31.4 0.0%
DVA DAVITA INC $21.1 0.1%

The largest stock sale for the quarter was Kroger Company. Bridgewater reduced its position in the company by $42.3 million and the stock now represents 0.3% of the firm’s portfolio. Shares of Kroger increased by 26.7% in the last three months.

BRIDGEWATER’S 7 BULLISH ANALYST TARGETS

Banks and brokerages often release 12 to 18 month price targets for the stocks they cover. Analyst upgrades and downgrades alone can often impact a company’s stock price.

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” – Benjamin Graham

The table below ranks stocks in Bridgewater’s portfolio with most bullish analyst targets:

Bridgewater 7 Bullish Analyst Targets

Ticker Name Upside (Analyst Target) % Of Portfolio

SWN SOUTHWESTERN ENERGY CO 81.1% 0.2%
DISH DISH NETWORK CORP 61.1% 0.1%
NFX NEWFIELD EXPL CO 52.4% 0.1%
DVN DEVON ENERGY CORP NEW 42.7% 0.1%
CNQ CANADIAN NAT RES LTD 38.4% 0.1%
MU MICRON TECHNOLOGY INC 37.5% 0.2%
GG GOLDCORP INC NEW 35.9% 0.0%

Southwestern Energy Company (NYSE: SWN) appears to be the most undervalued stock in the fund based on the average price target from Wall Street analysts.

BRIDGEWATER’S RECENT PRICE PULL-BACK STOCKS

To find stocks in the firm’s portfolio that may be unpopular at the moment and trading at cheap valuations, I ranked the firm’s holdings by price pullbacks. The ranking table below lists the stocks in Bridgewater’s portfolio by stock price performance over the last 30 days.

Bridgewater Recent Price Pull-Back Stocks

Ticker Name Price 1-mo Ago Current Price % Change 1-mo

SWN SOUTHWESTERN ENERGY CO $5.47 $3.66 -33.1%
NFX NEWFIELD EXPL CO $34.75 $26.14 -24.8%
GE GENERAL ELECTRIC CO $18.76 $14.69 -21.7%
DVN DEVON ENERGY CORP NEW $44.04 $35.09 -20.3%
SCG SCANA CORP NEW $44.05 $35.77 -18.8%
CLF CLEVELAND CLIFFS INC $8.68 $7.13 -17.9%
CNQ CANADIAN NAT RES LTD $37.14 $30.94 -16.7%

Southwestern Energy Company is at the top of the list again. The company’s stock has fallen by -33.1% over the last month. It may be worth taking a closer look at the stock, especially after this recent decline.

Managers with more than $100 million in qualifying assets under management are required to disclose their holdings to the SEC each quarter via 13F filings. Qualifying assets include long positions in U.S. equities and ADRs, call/put options, and convertible debt securities.

Shorts, cash positions, foreign investments and other assets are not included. It is important to note that these filings are due 45 days after the quarter end date. Therefore, Bridgewater’s holdings above represent positions held as of December 31st and not necessarily reflective of the fund’s current stock holdings.

However, most can agree that with thousands of stocks traded on U.S. exchanges, doing thorough research on each one is nearly impossible for smaller investors. Leveraging the resources of the largest hedge funds on Wall Street can be a powerful way to narrow down the list.

The following article was republished with permission from Vintage Value Investing. 

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