Ray Dalio-led hedge fund divested from all Chinese investments.
Bridgewater Associates Shifts Investment Strategy Amid Geopolitical Tensions
In a significant move, Bridgewater Associates, the renowned hedge fund founded by investor Ray Dalio in 1975, has sold its stakes in several Chinese companies, including Baidu, Alibaba, JD.com, Nio, Yum China, worth a total of $1.4 billion. This decision comes amid heightened geopolitical and investment risks associated with China.
The sale of Dalio's stake in Bridgewater Associates does not necessarily indicate a broader trend of divestment from Chinese assets by the hedge fund. However, it does represent a stark reassessment amid ongoing geopolitical tensions and renewed US-China trade frictions, which injected significant market volatility and investor caution in 2025.
With Dalio's departure from the firm, new CEO Nir Bar Dea is charting a different strategic course. Bridgewater has shifted to focus on a more concentrated portfolio of high-conviction bets. This is evident in their increased investment in tech giant Nvidia (by 154%) and healthcare conglomerate Johnson & Johnson (up 668%).
The decision to divest from Chinese stocks and invest in these companies reflects concerns over geopolitical risks and a shift in Bridgewater’s investment philosophy post-Dalio. The hedge fund is favouring focused, high-conviction positions in companies like Nvidia, Johnson & Johnson, Microsoft, and Meta rather than exposure to Chinese equities.
It's important to note that the sale of Dalio's stake does not automatically mean a decrease in investor confidence in China's economic prospects. It is a personal decision and not a collective one for the hedge fund. Similarly, the divestment from Chinese assets does not necessarily mean a change in the hedge fund's investment strategy towards China.
The sale of Dalio's stake in Bridgewater Associates was announced in early August. The hedge fund's decision to reduce and divest from certain companies may indicate a shift in investment strategy. However, it does not imply any immediate change in the management structure of the hedge fund, nor does it mean Dalio is no longer associated with the firm. He remains a mentor to the hedge fund's investment team.
[1] CNBC, "Bridgewater Associates sells all its stakes in US-listed Chinese companies", August 2025. [2] Wall Street Journal, "Ray Dalio Steps Down from Bridgewater Associates Board", August 2025. [3] Financial Times, "Bridgewater Associates shifts investment strategy", August 2025. [4] Bloomberg, "Bridgewater Doubles Down on Nvidia, Increases Stake by 154%", August 2025. [5] Reuters, "Bridgewater Associates makes colossal new investment in Johnson & Johnson", August 2025.
[1] Amid the geopolitical tensions and investment risks, Bridgewater Associates is not only divesting from Chinese assets but also inclining towards technology-related companies for investment. [2] The shift in their investment strategy is evident in their increased focus on tech giant Nvidia and healthcare conglomerate Johnson & Johnson, marking a departure from their previous exposure to Chinese equities.
