Billionaire Investor Ray Dalio Dumps SPY and Digs into Gold and Alibaba Stock

When Ray Dalio makes a move, the market listens — or at least, it should. The billionaire behind Bridgewater Associates just pulled a signature Dalio move: hedge the storm, play the long game, and go where others aren’t looking.

In Q1 2025, Dalio cut loose more than half of his fund’s SPDR S&P 500 ETF (SPY) holdings — a bold signal that he’s bracing for turbulence ahead. And he didn’t stop there. While trimming broader exposure, he leaned into gold and Chinese tech, signaling a sharp pivot from passive U.S. index bets to more targeted, tactical plays.

Dalio Cuts SPY as Trump Tariffs Shake Confidence

Bridgewater’s decision to scale back its SPY position — now trimmed to just 8.6% of the portfolio — reads like a vote of no confidence in smooth sailing for U.S. equities. As Trump’s tariff rhetoric returns and volatility spikes, this wasn’t a panic sell. It was a measured retreat from a market that might get blindsided.

Dalio’s move seems especially timely. The selloff came just before “Liberation Day tariffs” rattled sentiment again, prompting a sharp Friday market dip. While SPY remains Bridgewater’s top holding by weight, its reduced share suggests a recalibration — and a bet that blanket U.S. exposure could be the wrong kind of risk.

Dalio Buys Gold as a Hedge Against Economic Shock

What replaced some of that SPY cash? Gold. Specifically, the SPDR Gold Shares ETF (GLD) — up over 2% in just one session following tariff chatter. For Dalio, it wasn’t just about timing a run — it was about preparing for whatever comes next.

Gold is a grounding force and with good reason. Dalio has long advocated for gold as a core part of all-weather portfolios, especially during inflation, geopolitical friction, or sharp macro turns. With Bridgewater moving deeper into GLD, it implies that defensiveness isn’t fear, it’s strategy.

Dalio Doubles Down on Alibaba while It’s Still Undervalued

On the offense, Dalio didn’t ignore growth — he just looked far from home. Bridgewater increased its position in Alibaba (BABA), even after the stock’s 42% YTD climb. That might raise eyebrows, but the logic runs deep.

With a P/E ratio of 16.2 and a beta of just 0.24, BABA offers what few tech giants can right now: low correlation to U.S. volatility, an improving macro backdrop (as China cuts rates), and exposure to AI-driven upside and cloud growth. Factor in rumors of a possible Apple partnership and growing investor interest in Chinese value tech, and Dalio’s move looks more like long-term conviction than a swing trade.

On TipRanks, Alibaba is rated a Strong Buy based on a unanimous 12 Buys. The average 12-month BABA price target is $166, which implies a 37% upside from the current price.

See more BABA analyst ratings

What Dalio’s Moves Signal for Everyday Investors

Trimming U.S. indexes. Hedging with gold. Buying into undervalued Chinese tech. Dalio isn’t betting on the end of the market — he’s betting on uneven ground ahead, where agility, liquidity, and value will matter more than blind exposure.

While others chase whatever’s hot, Dalio is doing what he always does: move early, hedge smart, and never assume the road will stay smooth.