Billionaire Ray Dario’s hedge fund has eliminated exposure to the S&P 500 and hedged against the US dollar.
The latest 13F filing shows that Dalio’s Bridgewater Associates has reduced its interest in SPDR S&P 500 ETF, a benchmark fund that tracks the performance of the S&P 500.
The fund currently accounts for approximately 8.5% of Bridgewater’s overall portfolio as of the end of March.
At the same time, the hedge fund has increased its exposure to SPDR Gold Shares ETF (GLD), an exchange trading fund that tracks the price of gold bullion.
Bridgewater has increased its GLD holdings by about 33% and allocated approximately $340 million in total exposure to precious metals.
The move is a frightening economic outcome characterized by high inflation, high unemployment and low economic growth as Dario repeatedly warns that a decline in the US dollar could ultimately cause stags.
However, Bridgewater’s portfolio is more than just a defense.
Alongside GLD, the company has dramatically increased its position at Chinese e-commerce giant Alibaba (BABA).
Bridgewater has increased Alibaba Holdings by more than 3,000% to reach 5,660,258 shares worth around $680 million.
This will make it one of the top holdings of the fund.
Alibaba stocks have risen about 42% since the start of the year due to strong growth in the cloud computing segment.
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