Bridgewater Reshapes Portfolio: Major Tech Stock Divestments and Bold Apple, AMD Bets Signal Strategic Shift

According to the latest data disclosed by the U.S. Securities and Exchange Commission (SEC), Bridgewater Associates, the world's largest hedge fund, submitted its latest holdings report as of the end of the third quarter of 2024. The report indicates that Bridgewater's total market value of holdings stood at $17.7 billion, reflecting a decrease of approximately 7.8% from the previous $19.2 billion. This decline underscores a strategic adjustment in its market approach.

Bridgewater's portfolio remained diverse, with the top ten holdings accounting for only 32.29% of the total portfolio value. Significant adjustments were observed within the technology sector, where Bridgewater made remarkable reductions. It notably divested a substantial portion of its positions in major tech stocks such as Nvidia, Meta, Microsoft, and Amazon, with a reduction rate of 27.48% for Nvidia and a striking 46.64% for Amazon. This broad divestment might suggest a reassessment of current valuations within the tech sector.

Despite these considerable divestments in tech companies, Bridgewater increased its holdings in Apple significantly. During the third quarter, it acquired an additional 562,000 shares of Apple, representing an increase of 119.86%. Consequently, Apple emerged as Bridgewater's tenth-largest holding, with a market value of $240 million. Apple's stock experienced notable fluctuations across the first three quarters, potentially influencing Bridgewater’s reinvestment strategy.

Moreover, Bridgewater made a significant move by increasing its stake in Advanced Micro Devices (AMD) dramatically. Following consecutive quarters of stock price decreases, Bridgewater perceived long-term value in AMD, opting to acquire 1.45 million shares, which marks an increase of 921.13%. However, it's important to note that despite this strategic investment, AMD faced continued downward pressure on its stock price into the fourth quarter, highlighting the inherent uncertainties in investments.

Beyond the tech realm, Bridgewater executed other notable portfolio alterations. Most prominently, it significantly reduced its holdings in Procter & Gamble, with a reduction rate of 55.46%. This large-scale sell-off may reflect a reevaluation of future market performance for consumer staples, as well as anticipated industry trends.

In the realm of Chinese concept stocks, Bridgewater's strategy reflected a cautious stance. Pinduoduo, ranking as its 17th largest holding, saw a slight reduction in shares during the third quarter. This careful approach might echo the shifting expectations surrounding China's economic growth and the resultant yield from associated stocks.

Overall, Bridgewater's portfolio adjustments during the third quarter appear to be strategic maneuvers responding to market dynamics and economic conditions, underscoring its active management expertise and deep market valuation insights. The market's future trajectory and Bridgewater's subsequent actions will continue to be closely observed by stakeholders.