Harriet Lefton

About the Author Harriet Lefton

Harriet originates from the UK where she worked as a journalist specializing in the metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer.

Here’s What Ray Dalio Is Up To: Apple Inc. (AAPL), Gilead Sciences, Inc. (GILD)


Billionaire Ray Dalio is the founder of one of the world’s largest investment funds, Bridgewater Associates. His stock picks, which we explore below, and his market opinion carry significance. According to financial accountability engine TipRanks, the $10.16 billion fund generated a 29.68% return for investors in the last year, but the fund’s performance still lags behind both the S&P 500 and the average hedge fund portfolio after tanking in 2015.

Dalio, who made his first successful investment age 12, has made headlines with his comments that the Trump era could “ignite animal spirits” and attract productive capital. We can gain further insight into the mind of Ray Dalio based on the most recent SEC 13F forms submitted by Bridgewater which reveal the fund’s portfolio picks for the third quarter. The fund’s preference of emerging market ETFs, as well as the SPDR S&P 500 ETF, continues. What’s interesting is that Dalio has also made moves towards the tech sector by adding significantly to his existing positions in Apple Inc. (NASDAQ:AAPL) while reducing his holding in anti-viral pharma company Gilead Sciences, Inc. (NASDAQ:GILD). Let’s take a closer look:

Apple Inc.

Dalio upped his Apple holding by 185% to 346,600 shares with a reported value of $39.18 million. This was a wise move- since the last quarter his Apple holding has made a gain of 8.36%. Apple shares have surged recently with much hype surrounding the upcoming iPhone 8 release later this year- expectations are that the phone will have s radical redesign with an edge-to-edge display. And as this TipRanks graphic shows, the market does not think Apple’s bull run will be slowing down any time soon. The average analyst price target on TipRanks represents a 13% upside potential from the current share price of $136.61.

Gilead Sciences, Inc.

Dalio dropped -15.85% of his Gilead holding although he still retains a significant shareholding with a reported value of $24.94 million. Since the last quarter, the value of this stock is down -8.53%. Gilead saw its share price fall rapidly after falling sales for its hepatitis C drugs (Harvoni and Sovaldi) which it has had to downprice to remain competitive. However, the market has remained bullish on Gilead as this TipRanks screen short shows: 12 analysts in the last three months have recommended buying GILD shares. Analysts are positive on the outlook for the company’s new drug Epclusa for chronic hepatitis C- reported to cost $890 per pill or $74,760 for a 12-week course of treatment.

 

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