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Bridgewater Associates Shed U.S. Bank Stocks Amid Market Instability

Bridgewater Associates, one of the world's leading hedge funds, offloaded US bank stocks in Q1 in response to regional lenders' collapse shaking investor confidence. This information was obtained through regulatory filings.

Ray Dalio
Ray Dalio

Big Five U.S. Banks See Bridgewater Exit

The company, established by billionaire Ray Dalio, relinquished its stakes in five prominent U.S. banks: JPMorgan & Co, Bank of America Corp, Wells Fargo & Co, Goldman Sachs Group Inc, and Morgan Stanley.

Citigroup Stake Reduction by Bridgewater

Bridgewater significantly downsized its exposure to Citigroup Inc, approximately by half, as evidenced by the regulatory filings.

Hedge Fund Stock Positions Revealed in 13-Fs

These investment decisions were disclosed in 13-F quarterly security filings. Although they offer a retrospective view, these filings provide a snapshot of the funds owned at the end of a quarter, serving as a primary avenue for hedge funds and other institutional investors to disclose their positions. However, they may not represent current holdings.

Global Hedge Funds Reduce U.S. Banking Stocks Exposure

Global hedge funds pared down their exposure to US banking stocks to nearly a decade low in March. This followed the collapses of Silicon Valley and Signature banks and UBS' impromptu acquisition of competitor Credit Suisse.

Bridgewater Slashes Positions in Smaller Banks

Bridgewater also significantly reduced its positions in smaller banks like Bank of Hawaii Corp and PacWest Bancorp, as well as regional lenders like PNC Financial Services Group, Citizens Financial Group, and Capital One Financial Corp.

Bank of America and JPMorgan: Bridgewater's Largest Stakes

As of December end, Bridgewater's largest bank stake was in Bank of America, valued at $106.2 million, followed by a $92.8 million stake in JPMorgan.

Bridgewater's Bearish Stance on European Banks

Bridgewater demonstrated a bearish stance on European banks in March, following SVB's failure that ignited fears of financial contagion. Earlier this month, JPMorgan acquired First Republic Bank, post its seizure by US regulators.

S&P 500 Banks Index Experiences Decline

The S&P 500 banks index witnessed a decline of 15.2% this year, reflecting the overall market instability.