Bridgewater's Bold Pivot: Tech Reductions and Strategic Buys in Apple and AMD Shake Up Portfolio

Bridgewater Associates, the world's largest hedge fund, has filed its third-quarter 13F report with the U.S. Securities and Exchange Commission, disclosing significant shifts in its investment strategy. As of September 30, 2024, the total market value of Bridgewater's equity holdings stood at $17.7 billion, marking a decline of approximately 7.8% from the previous quarter’s $19.2 billion. During this quarter, Bridgewater made strategic decisions to introduce 79 new positions and increase 260 existing holdings while completely divesting from 183 positions and reducing stakes in 428 securities.

The fund’s portfolio was notably diversified, with its top ten holdings comprising 32.29% of the total market value. Key positions included prominent ETFs like the iShares Core S&P 500 ETF (IVV) and iShares Core MSCI Emerging Markets ETF (IEMG), as well as tech giants such as Google A, Nvidia, and the SPDR S&P 500 ETF Trust (SPY).

A significant trend in the third quarter was Bridgewater's marked reduction in technology stocks. Among its top ten holdings, Bridgewater notably decreased its stakes in Nvidia, Meta, Microsoft, and Amazon, with reductions of 27.48%, 16.65%, 20.19%, and 46.64%, respectively. Additionally, the fund exited its positions in Oracle and IBM.

Conversely, Bridgewater notably ramped up its holdings in Apple, purchasing an additional 562,000 shares—a 119.86% increase—elevating Apple to Bridgewater's tenth-largest holding with a market value of $240 million by the end of the quarter. This marked a reversal from the second quarter, where Apple saw significant reductions in Bridgewater's portfolio, aligning with fluctuations in Apple's stock prices over the year.

Another notable increase was made in Advanced Micro Devices (AMD), where Bridgewater augmented its stake by 1.45 million shares, representing a 921.13% increase. This move appears timed to capitalize on price drops following AMD's stock declines in the second and third quarters.

Also within its portfolio adjustments, Bridgewater reduced its holdings in Procter & Gamble by 1.99 million shares, a significant 55.46% reduction, showcasing its most substantial cut for the quarter. Meanwhile, in its handling of Chinese stocks, Bridgewater made a minor reduction in its stake in Pinduoduo, which is its 17th largest holding by the end of the quarter, maintaining its market value share at around 0.96%.