10 Largest Hedge Funds in The World And Their Favorite Stock Picks

2. Bridgewater Associates (AUM: $150 billion) has grown in recent years to become the world’s second largest hedge fund. Actually it used to be number one and several websites still call it the world’s largest hedge fund. The fund focuses on economic trends and has a global macro investing style. It tries to generate alpha by investing in 15 uncorrelated strategies that are expected to generate positive alpha. This way it is usually able to generate alpha on a relatively consistent basis.

Ray Dalio, the founder of this fund thinks that the new Trump administration will have major impact on the economy, and markets and policies will be broadly positive for the US economy. The world’s second largest fund has successfully increased its assets under management in the last ten years dramatically and currently manages assets worth $150 billion. It doesn’t allocate a large portion of its portfolio to equities. Bridgewater Associates has the largest sector allocation towards the financial sector. Apple Inc. (NASDAQ:AAPL) is the second largest holding of this second largest hedge fund in the world. The fund holds a positive view on this stock as it more than doubled its position size during the third quarter. While the stock has under-performed the market over the last one year, its valuation remains cheap and it give a good dividend yield of 2%.