Bridgewater Associates, the hedge fund founded by billionaire investor Ray Dalio, made some major changes to its portfolio in Q2. According to the 13F filing, the fund initiated a new position in chip designer ARM (ARM) and raised its holdings in key U.S. tech giants, such as Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL). Meanwhile, it fully exited its stake in Chinese firms like Alibaba (BABA), Baidu (BIDU), and JD.com (JD).
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Bridgewater’s Key New Investments
Bridgewater acquired over 473,000 Arm shares, valued at nearly $76.6 million, during the second quarter. It is worth noting that ARM’s chip architecture powers billions of devices globally, and its recent momentum in AI workloads has caught the attention of institutional investors.
Apart from ARM, Dalio also bought new stakes in business software company Intuit (INTU) and EQT Corp. (EQT), an energy company.
At the same time, he increased his stake in NVDA stock by a massive 154.37% to $1.14 billion. Also, the fund’s exposure to Microsoft and Alphabet stocks were increased by 911,000 and 2.56 million shares, respectively.
These moves signal growing confidence in the tech sector, especially those set to gain from AI growth.
Dalio Exits Chinese Stocks
Just months after raising his Alibaba stake by more than 3,360%, Dalio has now sold all 5.66 million BABA shares, reflecting a 3.47% impact on Bridgewater’s portfolio. The reversal comes amid rising U.S.-China tensions, tariff threats, and growing concerns over Chinese tech regulation.
Importantly, Bridgewater exited positions in 16 Chinese stocks in total, worth over $1.4 billion.
The move suggests Dalio is being cautious about the Chinese market due to concerns over regulation and global tensions. By pulling back, the fund is lowering risk and shifting money to areas with steadier growth.