Hedge Funds: Bridgewater Associates Invests $400 Million in Gold

Ray Dalio’s Bridgewater Associates hedge fund has invested $400 million in gold during the second quarter.  Based on Bridgewater’s 13F filings, the hedge fund bought 1.4 million shares of the SPDR Gold Trust.  Additionally, the company acquired 4.1 million shares in the iShares Gold Trust.  Bridgewater’s SPDR holdings have risen from $600 million in the first quarter to now over $900 million.  The company’s holdings in iShares jumped from $176 million to $268.4 million. 

One reason for this could be the rise in gold prices this year.  Gold prices have increased by 26 percent since the beginning of the year.  Last month, prices reached $2,000 per ounce.  Bridgewater Associates’ investments in gold went to exchange-traded funds — which hold more gold than central banks.  

These gold investments coincide with Bridgewater’s decision to drop its investments in a variety of companies and banks.  This could be in part due to the highly volatile nature of the market.  In addition, the pandemic’s unknown road to recovery leads the hedge fund to diversify its portfolio and decrease risks.  

Bridgewater’s portfolio is now at $5.96 billion.  This is a $1 billion increase from the previous quarter.