In this article we will take a look at 4 important tech stocks billionaire Ray Dalio’s Bridgewater Associates dumped in the first quarter of 2024.
Ray Dalio’s Bridgewater Associates’ new management has been making big changes to cut costs and tighten its belt following lackluster returns over the past few years. However, the fund, on an overall basis, increased its exposure to technology stocks. Insider Monkey’s analysis shows that tech accounted for about 17% of Bridgewater’s Q1’2024 portfolio, up from just 7% in the previous quarter. The portfolio’s total worth stood at about $19.8 billion.
Ray Dalio’s fund increased its holdings in major tech names like Nvidia (+163%), Apple (+166010%) and Alphabet (+163%).
However, in this article our focus remains on the stocks the fund sold off in the March quarter.
4. SunPower Corporation (NYSE:SPWR)
Number of Hedge Fund Holders: 14
SunPower Corporation (NYSE:SPWR) makes photovoltaic solar energy generation systems and battery energy storage products. Over the past one year, SunPower Corporation (NYSE:SPWR) has lost about 71% in value, and perhaps that’s why Ray Dalio’s hedge fund gave up on the stock, selling 41,337 shares in the company, and exiting its position completely.
3. Sensata Technologies Holding plc (NYSE:ST)
Number of Hedge Fund Holders: 35
Sensors company Sensata Technologies Holding plc (NYSE:ST) has gained about 15% so far this year. Ray Dalio’s hedge fund dumped all 115,865 shares of Sensata Technologies Holding plc (NYSE:ST) in the first quarter.
As of the end of the March quarter, the biggest stakeholder of Sensata Technologies Holding plc (NYSE:ST) was Israel Englander’s Millennium Management which owns a $100 million stake in the company.
Diamond Hill Capital mentioned Sensata Technologies Holding plc (NYSE:ST) in its Q4 2023 investor letter. Here is what the firm has to say:
“Among our bottom contributors in Q4 were Sensata Technologies Holding plc (NYSE:ST) and BorgWarner. Sensata Technologies, an electronics component manufacturer, was pressured by United Auto Workers (UAW) strikes during the quarter, which weighed on its near-term guidance. Further, the company’s management team has executed poorly recently. However, we maintain our conviction in the long-term outlook for Sensata, which should benefit from increased use of sensors and controls in new cars.”
2. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 41
Zoom Video Communications, Inc. (NASDAQ:ZM) has failed to maintain the momentum of the pandemic days, as the market keeps getting inundated with new video call software and companies urge people to work from offices. Ray Dalio’s Bridgewater sold 192,205 shares of Zoom Video Communications, Inc. (NASDAQ:ZM) in the first quarter, liquidating its entire position in the company.
Rosenblatt Securities recently raised Zoom Video Communications, Inc. (NASDAQ:ZM) rating to Buy from Neutral and gave a $75 price target.
1. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 45
ON Semiconductor Corporation (NASDAQ:ON) shares are down about 14% over the past one year. On Semiconductor shares jumped last month after the company posted Q1 results. Baird analyst Tristan Gerra expects an “L-shaped” recovery at the company following the results and latest outlook. The analyst has a Neutral rating and a $60 price target on ON Semiconductor Corporation (NASDAQ:ON).
Bridgewater Associates cut its stake in ON Semiconductor Corporation (NASDAQ:ON) by a whopping 98% in the first quarter. The fund still owns 10,382 ON shares.
Artisan Partners made the following comment about ON Semiconductor Corporation (NASDAQ:ON) in its Q1 2024 investor letter.
“Among our top detractors were Atlassian, ON Semiconductor Corporation (NASDAQ:ON) and Exact Sciences. ON Semiconductor is a leading designer and manufacturer of chips for power management and image sensing. From a battery-electric vehicle (EV) standpoint, ON is a leading producer of silicon carbide chips. Shares have been under pressure as the company grapples with multiple quarters of inventory right-sizing across the entire auto supply chain and slower-than-expected growth of EV sales. However, ON is seeing smaller sales declines than peers due to market share gains, and we believe the company will be equally well positioned if automakers rebalance their efforts from full EVs toward hybrid vehicles. We remain patient.”
