Bridgewater slashed its Nvidia holdings by 65% in Q3, halved its positions in Google and Meta, increased holdings in the U.S. large-cap index, and liquidated its emerging markets ETFs.

Bridgewater slashed its Nvidia holdings by 65% in Q3, halved its positions in Google and Meta, increased holdings in the U.S. large-cap index, and liquidated its emerging markets ETFs.

When the AI bubble, sovereign debt risks, and a global liquidity turning point are all approaching at once, Ray Dalio’s “debt cycle warning” seems to be moving from theory to reality. According to the latest 13F filings, in the third quarter, Bridgewater Associates, the world’s largest hedge fund, not only slashed its Nvidia holdings by 65% in one go, but also significantly increased its positions in US large-cap index ETFs, and liquidated multiple key emerging market holdings—a “risk-avoidance reshuffling” is quietly underway. Nvidia Significantly Reduced: Short-term Risks Heat Up The report shows that as of September 30th, Bridgewater held 2.51 million shares of Nvidia, a sharp 65.3% drop from 7.23 million shares at the end of Q2. And in the just-ended second quarter, Bridgewater had just substantially increased its Nvidia position by over 150%. This about-face in two quarters signals a clear strategic shift: from “following the trend” to “prioritizing risk management.” According to a prior article from Wallstreetcn, Bridgewater founder Ray Dalio recently warned again that the global debt cycle has entered the late-stage risk phase, believing the next financial crisis is more likely to stem from sovereign debt issues rather than traditional market over-speculation. US public debt continues to climb, geopolitical tensions are growing, and central bank interventions are all contributing to higher systemic risk. As a chief beneficiary of the AI boom, Nvidia’s market cap has soared, but Bridgewater’s withdrawal indicates the fund has reassessed its risk exposure under tightened fiscal and monetary policy conditions. This move is in sharp contrast with other hedge funds—David Tepper’s Appaloosa Management raised its Nvidia position in the same period to 1.9 million shares. Increasing US Large-cap ETFs: Betting on “Stable Growth,” Enhancing Hedges While it was reducing individual stock risk, Bridgewater significantly increased its allocation to US large-cap ETFs: - SPDR S&P 500 ETF (SPY): Holdings surged 75.3% to 4.05 million shares, accounting for 10.62%, making it the largest holding. - iShares Core S&P 500 ETF (IVV): Allocation rose to 6.69%, the second largest holding. Both ETFs together make up over 17% of the fund portfolio, which in Bridgewater’s traditional macro portfolio qualifies as “core asset-level” weight. The intention of this adjustment is clear: - Lower sector concentration: Avoid AI and tech stocks overly dictating portfolio volatility. - Embrace stable cash flow from large-caps: In the late economic cycle, heavyweights are more controllable risk-wise than growth stocks. - Increase portfolio flexibility: ETFs allow for easier short-cycle adjustments and risk hedging. For Bridgewater, which upholds “risk parity + diversification,” this move entirely fits its “seeking opportunities amid defense” style. Liquidating Multiple Stocks and Emerging Market ETFs: Accelerating Exit from Non-core Assets Besides reducing Nvidia, in Q3 Bridgewater also completely liquidated ten major stock positions, including Lyft, Spotify, JPMorgan Chase, United Airlines, Pfizer, and trimmed positions in Amazon (-9.56%), Microsoft (-36.03%), Meta (-48.34%), and Google (-52.61%)—all members of the “Magnificent Seven.” These companies span finance, healthcare, tech, transport, real estate, resources, and more—Bridgewater’s moves are clearly a comprehensive “slimming” of non-core assets, returning to a handful of highly liquid, highly stable targets. Additionally, the 13F shows Bridgewater is also continuing to reduce its allocation to emerging market ETFs, highlighting concern about the vulnerability of emerging markets amid global liquidity tightening. Heavy Buying in Select Sectors: Netflix, Monster Beverage, Latin American E-commerce MELI Despite the overall “risk-reduction” tone, Bridgewater also made major increases in certain stocks, reflecting its alpha approach of “seeking undervalued recovery assets”: - Netflix: Position surged by 896% - MercadoLibre (Latin America’s e-commerce giant): Increased by 1,237% - Popular / Evercore / Monster Beverage / Exelixis: Built up holdings by 1,000%–5,000% - Trane Technologies (HVAC giant): Increased holdings by 5,343% These targeted increases share some commonalities: stable profitability, strong cash flows, low industry cyclicality, more “resilient” to macro shocks, and relatively cheaper valuations than big tech giants. It’s clear that Bridgewater is both moving away from high-valuation, high-volatility AI sectors, and laying “contrarian bets” on fundamentally solid recovery-type companies. Risk Warning and Disclaimer The market has risks, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account individual users’ special investment objectives, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific circumstances. Investments made based on this material are at one’s own risk.