Bridgewater Associates Liquidates All US-Listed Chinese Stocks Amid Geopolitical Risks

Bridgewater Associates, the world's largest hedge fund, has sold all its US-listed Chinese stocks, including Alibaba, JD, PDD, and Baidu, due to geopolitical and investment risks. The fund, led by CEO Nir Bar Dea, has doubled down on AI chipmaker Nvidia and made a new bet on healthcare conglomerate Johnson & Johnson. This marks a significant strategic pivot from the firm's previous strategies under founder Ray Dalio.

Bridgewater Associates, the world's largest hedge fund, has made a significant strategic pivot by liquidating all its U.S.-listed Chinese stocks, including Alibaba, JD.com, PDD Holdings, and Baidu. This move, revealed in the firm's second-quarter 13F filing for 2025, marks a stark reassessment of geopolitical and investment risks in the world's second-largest economy [1].

Under the leadership of CEO Nir Bar Dea, Bridgewater has more than doubled its stake in AI chipmaker Nvidia Corp. (NVDA), increasing its holding by 154% and boosting its healthcare bet on Johnson & Johnson (JNJ) by a staggering 668%. These changes represent a broader, aggressive portfolio overhaul, with the fund concentrating its capital in a handful of high-conviction bets [1].

The decision to exit Chinese stocks comes amidst growing geopolitical tensions and investment risks. Bridgewater's move contrasts sharply with the public commentary of its former founder, Ray Dalio, who has praised China's advancements in artificial intelligence and robotics [1].

In response to Bridgewater's strategic shift, the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust ETF (QQQ) fell on Monday, reflecting broader market sentiment. The SPY declined by 0.27% to $643.56, while the QQQ dropped by 0.36% to $569.90 [1].

Other hedge funds have also shown increased interest in technology giants and AI-related investments. For instance, hedge funds poured billions into Microsoft, Amazon, and Nvidia, signaling a decisive return to Big Tech and AI after months of volatility [2].

Bridgewater's exit from Chinese stocks and increased focus on AI and healthcare are part of a broader trend among hedge funds, which have been reshuffling their portfolios in response to geopolitical risks and market volatility.

References:

[1] https://www.benzinga.com/markets/hedge-funds/25/08/47305856/bridgewater-once-led-by-ray-dalio-exits-alibaba-jd-pdd-and-baidu-dumping-all-us-listed-chinese-stocks-amid-geopolitical-risks

[2] https://www.wealthprofessional.ca/news/industry-news/hedge-funds-double-down-on-nvidia-and-microsoft-as-ai-fuels-market-bets/390014