Skip to content

Ray Dalio’s Bridgewater cuts European short bet to under $1 billion

Ray Dalio's Bridgewater cuts European short bet to under $1 billion
Dino Kurbegovic

Bridgewater Associates, one of the biggest hedge funds in the world, has seemingly walked away from its big short bet against Europe.

The short position the fund held initially was slashed down to $845 million from a staggering $10.5 billion, as reported by Bloomberg on August 17. 

The initial short position in June included roughly 50 European companies, with the more prominent being the pharma giant Bayer (ETR: BAYN), financial services company Allianz (ETR: ALV), and the Spanish bank Santander (BME: SAN), along with Deutsche Borse, Infineon Technologies, Munich Reinsurance, Air Liquide, ING Groep, BBVA, and BASF.

Consequently, the only short positions left in the portfolio are against Banco Santander, Air Liquide, and ING Groep. Meanwhile, the Stoxx Europe 600 index has dropped 10.44% year-to-date (YTD).

Initial short position by Bridgewater. Source: Twitter

Breakout Point

Breakout Point GmbH, which follows meme stocks and uncovers significant short positions, used public disclosures to get the exact positions Bridgewater held against European equities. 

According to EU law, funds have to disclose bets over 0.5% short interest; therefore, it is not possible to know exactly what the fund has in short position under this threshold. 

Since no statement was made by Dalio or his fund regarding the unwinding of this short bet, it remains unclear what the real reason is behind staying bearish on only three out of initially 50 companies. 

Finally, the initial short bet could have been brought on by the war in Ukraine and issues regarding supply chains and energy disruption. Only time will tell whether Dalio now sees a change in these macro trends and how the stocks will fare. 

Buy stocks now with Interactive Brokers – the most advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.