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- Bridgewater Associates and Renaissance Technologies split up on hot stocks in the last quarter.
- Bridgewater, founded in Ray Dalio's name, has sold its stakes at GameStop and AMC Entertainment.
- Jim Simons RenTech boosted its bets on Elon Musk’s Tesla by buying shares of Bed Bath & Beyond.
Two of the largest hedge funds in the world have split on the most popular names on the market during the first quarter. This suggests that they disagree about whether meme stocks are still profitable.
Bridgewater Associates has sold its stakes at GameStop, AMC Entertainment and AMC Entertainment. Renaissance Technologies increased its bets on Tesla and bought shares of Bed Bath & Beyond.
Bridgewater, a billionaire investor founded by Ray Dalio in 2022, tripled its GameStop holdings and AMC shares in the fourth quarter. It finished the year with $712,000 in GameStop and $261,000 in AMC shares.
The hedge fund has not updated its portfolio since the first quarter, so it is likely that both meme stocks were sold.
RenTech, founded by Jim Simons a former MIT mathematician and Cold War codebreaker, increased its bets on Elon Musk’s Tesla by 18% last quarter to 4 million share. RenTech's stake in Tesla increased by 99% as a result of the purchases and a dramatic rise in the stock price of the electric vehicle maker.
RenTech increased its Tesla stake from 1,400 to 3.4 millions shares in the fourth quarter last year. RenTech first invested in Musk’s automaker in 2013 and held the equivalent of 59,000,000 shares in 2019. This is a position that's worth around $10 billion.
Simons' fund invested in a meme stock as well last quarter. It purchased nearly 1.8 millions shares of BBBY, a stake valued at $749,000 by the end of March.
BBBY's share price soared to more than $35 in January 2021, at the peak of the meme stock boom. It fell below $1 in February this year as the problems of the homeware retailer grew. The company declared bankruptcy in April and delisted its stock earlier this month.
RenTech is a hedge fund which uses algorithms to make many of its decisions. It may have sold BBBY's position before the collapse of the retailer.
Bridgewater's largest single-stock position at the end March was Procter & Gamble (735 million dollars), Johnson & Johnson (556 million dollars), and Coca-Cola (over $500 million) shares. The US portfolio's total value was $16.4 billion, a drop from $18.3 million three months ago.
RenTech's 75 billion dollar portfolio included Novo-Nordisk (1.7 billion dollars), Amazon (930 million dollars), and Airbnb (753 million). RenTech's Apple stake was reduced by over 99%. From 7.1 million shares valued at $922 million in December, to less than 10,000 shares valued at $1.6 million, three months later.
The quarterly portfolio update is only a snapshot of the fund's assets on that particular day. Also excluded are non-stock assets and private investments. They do not include shares that have been sold short. They don't give a complete and accurate view of the firm's investment.
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By: tmohamed@insider.com (Theron Mohamed)
Title: Ray Dalio’s Bridgewater fund dumped GameStop and AMC last quarter – while Jim Simons’ RenTech bet on Tesla and Bed Bath & Beyond
Sourced From: markets.businessinsider.com/news/stocks/dalio-bridgewater-simons-rentech-gamestop-amc-tesla-bbby-meme-stocks-2023-5
Published Date: Mon, 15 May 2023 12:00:02 +0000
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