Bridgewater Associates, the world's largest hedge fund, has completely liquidated its holdings in all U.S.-listed Chinese companies, a dramatic reversal that marks the firm's most significant strategic pivot under its new post-Ray Dalio leadership.
Bridgewater Reassesses Geopolitical And Investment Risks
The moves, revealed in the firm's second-quarter 13F filing for 2025, signal a stark reassessment of geopolitical and investment risks in the world's second-largest economy.
The comprehensive sell-off included the complete disposal of stakes in Chinese technology and e-commerce giants, which had previously been significant positions for the macro-focused fund.
This decisive exit from China was part of a broader, aggressive portfolio overhaul. The fund, which reported 585 holdings valued at $24.791 billion as of the quarter’s end, concentrated its capital in a handful of high-conviction bets.
Bridgewater more than doubled down on AI chipmaker Nvidia Corp. (NASDAQ:NVDA), increasing its stake by 154%, and made a colossal new bet on healthcare conglomerate Johnson & Johnson (NYSE:JNJ), boosting its holding by a staggering 668%.
| Chinese Stocks | Shares (as of March 31) | Shares (as of June 30) | % Change (QoQ) | Value (as of June 30) |
| Alibaba Group Holding Ltd. ADR (NYSE:BABA) | 5,660,258 | 0 | -100% | 0 |
| JD.com Inc. (NASDAQ:JD) | 2,786,833 | 0 | -100% | 0 |
| PDD Holdings Inc. ADR (NASDAQ:PDD) | 1,742,717 | 0 | -100% | 0 |
| Baidu Inc. (NASDAQ:BIDU) | 2,076,305 | 0 | -100% | 0 |
Bridgewater After Dalio Divests His Stake
These sweeping changes represent the first major strategic footprint of the new management team, led by CEO Nir Bar Dea, following founder Dalio's final divestment of his stake and departure from the board.
While the Bridgewater name remains, the second quarter filing suggests the firm is charting a new course, diverging from the strategies that defined it for decades under its iconic founder.
| Stocks | Shares (as of March 31) | Shares (as of June 30) | % Change (QoQ) | Value (as of June 30) |
| Nvidia Corp. (NASDAQ:NVDA) | 2,841,980 | 7,229,134 | 154% | $1.142 billion |
| Johnson & Johnson (NYSE:JNJ) | 297,288 | 2,282,539 | 668% | $348.657 million |
| Uber Technologies Inc. (NASDAQ:UBER) | 591,582 | 3,733,769 | 531% | $348.360 million |
| Microsoft Corp. (NASDAQ:MSFT) | 809,435 | 1,715,057 | 112% | $853.086 million |
| Alphabet Inc. (NASDAQ:GOOGL) | 3,042,327 | 5,600,424 | 84% | $986.962 million |
Dalio Likes Chinese Firms
The strategic pivot away from China is particularly notable as it contrasts sharply with the public commentary of Dalio himself.
Dalio, on several occasions, has praised China, stating that the country is “ahead on the applications” of artificial intelligence and robotics.
This divergence underscores the new reality: while Dalio the mentor may be bullish on China's long-term technological trajectory, Bridgewater the firm, under new control, has deemed the current investment risk unacceptable.
Price Action
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Monday. The SPY was down 0.27% at $643.56, while the QQQ also declined 0.36% to $569.90, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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