Major Reshuffle in Investment Landscape: Why is Bridgewater Abandoning Gold and Increasing US Stocks at the Macro Turning Point?

In Q3 2025, investment data shows that the world’s top hedge fund, Bridgewater, is undergoing a profound portfolio restructuring. This adjustment is far from a simple rotation of holdings; it reflects their judgment of a new turning point in the macro environment—shifting from defense to offense, from diversified hedging to a focus on fundamentals.

Retreat or Tactical Shift? The Real Logic Behind the Complete Gold Exit

The most notable move in the industry is Bridgewater’s complete liquidation of gold. The holdings in SPDR Gold Trust (GLD) have been fully sold off, which for long-term gold advocates like founder Ray Dalio seems to be a departure from their investment philosophy.

But the reality is more complex. Dalio has publicly stated multiple times that gold is the ultimate hedge against currency devaluation and systemic trust crises—an asset that does not rely on third-party credit. He has even suggested in public that, under increasing market pressure, the allocation to gold should be increased to 10%-15%.

So why the sudden exit? The answer lies in the changing market environment. Against the backdrop of the US stock market reaching all-time highs, valuation divergence, and significantly increased investment opportunities, the opportunity cost of zero-yield assets has risen sharply. Essentially, Bridgewater’s move is: during a window of rising risk appetite, using the expected returns of risk assets to replace the insurance value of low-yield assets.

Simultaneously, they reduced exposure to emerging markets. The holdings in iShares MSCI Emerging Markets ETF (IEMG) decreased by 93%, signaling a capital withdrawal from higher-uncertainty sectors toward the more transparent fundamentals and clearer policy environment of the US market.

Tech Stocks Reduction: Not Bearish, But Repricing

Data also shows that Bridgewater has significantly reduced holdings in some tech giants—often misinterpreted by the market as “bearish on tech.” In reality, this is more refined position management.

Specific figures show: Nvidia reduced by 65.28% (about 4.64 million shares to 2.47 million), Microsoft down 36.03% (about 330,000 shares), Alphabet down 52.61% (about 2.32 million shares), Meta down 48.34% (about 310,000 shares). The common feature of these moves is—they are adjustments following substantial gains and valuation increases earlier this year.

Bob Prince (Co-Chief Investment Officer of Bridgewater) revealed the true investment logic: amid this AI-driven rally, the market has become highly crowded with trades. Reducing these high-valuation positions does not mean negating their long-term value but rather detaching from overly crowded sectors and shifting to risk-reward profiles with better prospects.

New Deployment Focus: From Consumer to Supply Side

Alongside reductions, Bridgewater has increased positions in more targeted areas. The direction of this adjustment is very clear—shifting from emotion-driven consumer giants to companies playing the role of “infrastructure providers” in the AI wave.

US broad-market ETFs have become the new " ballast." The iShares Core S&P 500 ETF (IVV) increased by about 1.74 million shares, up 75%, ending with 4.05 million shares valued at approximately $2.71 billion. This increase reflects not just a quantity boost but a renewed emphasis on the breadth of the S&P 500—using market breadth to diversify risk instead of relying solely on hedging tools.

Semiconductor equipment and enterprise software are emerging as new focus areas. Lam Research increased holdings by 111% (to 3.46 million shares, valued at $464 million), Adobe by 73% (to 1.26 million shares, valued at $445 million), Workday by 132% (to 1.04 million shares), Mastercard by 190% (to 366,000 shares). These companies are positioned higher in the AI industry chain, with clearer fundamentals and relatively reasonable valuations.

Additionally, Bridgewater has newly built positions in recently listed platform companies—Reddit (617,000 shares, valued at $142 million) and Robinhood (808,000 shares)—reflecting their ongoing exploration of new growth opportunities.

Macro Logic: A New Balance in an Era of Uncertainty

Behind these moves is a reassessment of two key variables in the global macro environment.

The first is the acceleration of “modern mercantilism.” Governments worldwide are increasingly shaping industrial patterns, and the intertwining of trade and geopolitics makes the global economic environment more complex and unpredictable. Traditional globalized hedging logic is failing; the value of emerging markets as diversification tools is declining.

The second is the exponential demand driven by the AI revolution. Each incremental improvement in performance requires exponential growth in computing power and capital investment. This not only boosts demand for chips, software, and energy but also creates a long-cycle wave of capital expenditure—an unpredictable variable for traditional economic models.

In response to this new macro paradigm, Bridgewater’s core investment officers, including Bob Prince, distilled three guiding principles:

Diversification: In the face of the historic concentration in the US stock market, employ a broader portfolio structure to hedge against unpredictable risk events.

Agility: As unknown macro factors become clearer, investment strategies must be able to iterate and adjust quickly. This is not about sticking to a single judgment but actively responding to new information.

Moderate Vigilance: Maintain skepticism toward market consensus, especially overly optimistic linear extrapolations.

Deep Insights: The Dynamic Evolution of the All-Weather Philosophy

Bridgewater’s recent adjustments are not simply a matter of “bullish or bearish” outlooks but a concrete practice of their “All-Weather” investment philosophy in a new environment.

Traditional all-weather strategies emphasize diversification across asset classes to cope with various macro scenarios. But today, this approach is evolving: from reliance on single hedging tools (like gold) to selecting high-quality assets within specific sectors based on fundamental analysis.

What does this mean? It means Bridgewater has not abandoned defense against uncertainty but has changed its approach—no longer depending solely on macro hedges, but constructing resilience through choosing companies that can remain competitive across multiple macro scenarios.

In the wave of AI, semiconductor equipment makers, enterprise software providers, and payment platforms will face ongoing industry demand regardless of macro shifts. In contrast, the macro-hedging value of gold appears less necessary at this moment.

Conclusion: Investment Choices for the New Era

Bridgewater’s major adjustment in Q3 2025 reflects how top global investment firms are rethinking survival amid uncertainty. This is not a rejection of past strategies but an active adaptation to the new environment.

From gold to S&P 500, from consumer tech to supply-side tech, this shift in investment path is clear and firm. It reminds us that true investment wisdom is never about rigidly sticking to a single view but about constantly adjusting perspectives and allocations based on environmental changes.

In this macro turning point, Bridgewater has chosen agility and precise focus—perhaps the most practical investment insights for the current moment.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial, investment, or legal advice.