NEW YORK, Nov 14 (Reuters) - Hedge funds Bridgewater
Associates, Coatue Management and D1 Capital added shares of
financial firms to their portfolio in the third quarter,
securities filings showed, ahead of a rally that followed Donald
Trump's victory in the U.S. presidential election.
Bridgewater, founded by Ray Dalio, ended September with
bigger positions in Goldman Sachs ( GS ), Morgan Stanley ( MS ),
Wells Fargo ( WFC ), Bank of New York Mellon ( BK ) and
Citigroup ( C/PN ). It also built a new position in Bank of America ( BAC )
.
Expectations that a Trump victory would bring looser
regulations to the banking industry helped lift the sector in
recent weeks. The KBW Bank Index is up roughly 17% since the end
of September and has surged by nearly 12% since the Nov. 5 vote.
Still, it is not possible to say whether Bridgewater held
its position past Sept. 30, which is the cutoff date for the
13-F filings.
Though they do not reveal current holdings, the filings are
one of the few ways to get a look at the portfolios of
often-secretive market players such as hedge funds and sovereign
wealth funds.
Bridgewater's biggest position in dollar terms was Wells
Fargo ( WFC ), a stake worth $79.6 million at the end of September.
Other hedge funds making bets on the banking sector included
Dan Sundheim's D1 Capital Partners, which had a new $174.9
million stake in Bank of America ( BAC ) on Sept. 30, a filing showed.
Coatue Management reduced its sizable stakes in Meta
Platforms ( META ) and Nvidia ( NVDA ), and built new stakes in
two investment firms. It bought 2.7 million shares in KKR
, worth $355 million, and 195,969 shares in Blackstone
, or roughly $30 million.
Both Blackstone and KKR, which manage private equity funds,
could benefit from a rebound in dealmaking.