Ray Dalio's Bridgewater Loaded Up on These Stocks in Q4 2024
Bridgewater Associates, founded by famed investor Ray Dalio, loaded up on shares of some big-name stocks in Q4. Bridgewater Associates recently released its Form 13F. Institutional investment managers with more than $100 million in discretionary control over 13F Securities must file this document. It provides transparency into what they own. Stocks and ETFs are two of the biggest 13F security categories.
Although Dalio isn’t running the day-to-day investment operations of Bridgewater at this point, he is still involved with the firm. He sits on its Board of Directors and mentors the company’s Chief Investment Officers. His ongoing presence shows that his principles and guidance still shape Bridgewater's investment philosophy and choices.
Robinhood: Bridgewater Betting on the Future of This Investment Platform
In Q4, Bridgewater massively increased its stake in Robinhood Markets (NASDAQ: HOOD), acquiring an additional 2.1 million shares. Shares of Robinhood have gone on an incredible run over the past several months. Bridgewater has likely achieved impressive returns with this investment. Since Sept. 30, Robinhood’s share price has risen by nearly 153% as of the Feb. 19 close. Excitement surrounding the company’s ability to benefit from increased interest in cryptocurrencies has been an important driver. President Trump’s notable affinity toward crypto adds to this thesis. Indeed, interest in crypto translated to success for Robinhood last quarter. Crypto trading volume, on which Robinhood earns a spread, spiked by 455%.
This was one factor that helped the firm to over double its average revenue per user from a year ago to $164. Now, the company has nearly $200 billion in assets under custody and has managed to increase its revenues by more than ten times in just 5 years. It has demonstrated a strong ability to cater to Gen Z and millennial investors. Its one-stop-shop platform, where investors can find both traditional and newer types of assets, resonates with these clients. Trillions in wealth are set to transfer to millennials and Gen Z over the next 20 years. This would be a big tailwind for Robinhood if it could keep these clients happy.
PayPal: Bridgewater Increases Stake in Online Payment Giant
In Q4, Bridgewater added over 1.1 million shares of PayPal (NASDAQ: PYPL), nearly doubling its position in this name. PayPal shares haven’t had much success since the beginning of Q3, with a return of 0% as of the Feb. 19 close. This is largely due to PayPal’s recent financial results that showed some onlookers underlying weakness in the company. Shares dropped by 13% after the release. As the company is looking to grow profitably rather than at the expense of profit, markets are down on this name. It's possible Bridgewater investors are bullish on this strategy despite the fact that it does risk PayPal losing market share.
However, Bridgewater also has notable positions in other companies in the payments industry, like Visa (NYSE: V) and Global Payments (NYSE: GPN). This signals that they may be bullish on the payments space in general. With economic growth and payment digitization both being trends that will continue over time, it makes sense to like this space. Additionally, Visa, Global Payments and PayPal are strong players in different niches within payments. Visa is the leader in card networks, while PayPal dominates digital wallets and online consumer payments. Global Payments ranks fourth in the United States market share in the merchant acquiring space.
AT&T: Bridgewater May Have Picked a Side in the Big 3 Telecom Battle
Bridgewater’s position in the Big Three telecom company AT&T (NYSE: T) ballooned in Q4 2024. It added nearly 5.2 million shares. Notably, Bridgewater does not have Verizon Communications (NYSE: VZ) and T-Mobile US (NASDAQ: TMUS) in its top 50 holdings. Bridgewater is possibly betting on the positioning of AT&T compared to its two rivals, especially as it pertains to broadband internet.
Broadband strategy is one of the biggest differences between these firms. AT&T has the strongest commitment to fiber optics. This technology requires expensive upfront investment, but it has many advantages for customers that AT&T believes will differentiate it. The stock has returned 22% since the start of Q4, and 17% in 2025. The company was able to expand its broadband margins in 2024 as its fiber business grew. The company now has enough fiber cable laid to support 29 million locations. This makes it a leader in this space and gives it the ability to grow substantially.
Learn more about HOOD
