Ray Dalio Bridgewater Associates nearly doubled its stake against European stocks to $ 10.5 billion.
Last week it was announced that Bridgewater had built $ 6.7 billion worth of short positions in European corporate securities.
However, as Bloomberg reports today, based on data collected, the value of the positions taken in Europe by the largest hedge fund in the world now amounts to 10.5 billion dollars.
Ray Dalio’s investment firm has taken a short position against 28 European securities, including more than $ 500 million in ASML Holding TotalEnergies, Sanofi and SAP.
It is noted that all 28 companies listed by Bridgewater are trading in the Stoxx 50 of European high capitalization, with the “bet” being made at a time when the economic growth of the Eurozone has fallen to a low of 16 months and Germany warned of a domino effect of Lehman Brothers from gas prices.
It is recalled that a short position is built through the sale of borrowed shares by someone who expects to reap the profits from their repurchase at a lower price if this actually happens in the market. Otherwise, if the price of the security increases, then the investor closes his position with losses.
In an interview with Bloomberg last week, Greg Jensen, Bridgewater Co-chief Investment Officer, argued that stock sell-offs so far are still small compared to their rally over the past decade and that a new rise in Europe and the US is still a possible possibility.
Jensen, however, declined to comment on Bridgewater’s bets on European titles.