Report Industry Investment Rating No information provided regarding the report industry investment rating. Report's Core View - In Q1 2025, Bridgewater significantly reduced its U.S. equity exposure while increasing allocations to gold and China, following the All Weather strategy to hedge against macro uncertainties and systemic risks [1][21]. - This adjustment aligns with Dalio's long - term debt cycle framework, as the U.S. is in the late stage of high debt and fiscal deterioration, while China is in an earlier phase with stronger growth potential and debt resilience [1][4][21]. Summary by Relevant Catalog 1. Overall Position Adjustment in Q1 2025 - Bridgewater's total portfolio value edged down slightly from USD 21.8 billion in Q4 2024 to USD 21.6 billion in Q1 2025. The portfolio structure shifted significantly with a "East Rising, West Declining" trend, cutting U.S. stocks and adding gold and Chinese assets [6][22]. - It加仓 283 stocks, newly built positions in 123 stocks, while reducing positions in 252 stocks and liquidating 150 stocks. The proportion of the top ten holdings in the portfolio value dropped from 43.2% in the previous quarter to 31.8%, showing a more diversified portfolio [6]. 2. Top 10 Buys - Bridgewater made significant purchases of Alibaba, increasing its holdings by 2120% to 566 million shares, making it the largest single - stock holding and the fourth - largest holding overall. Alibaba's stock price rose 56% in Q1 [8]. - Newly built a position in SPDR Gold TR (GLD), with a purchase of over 1.1 million shares, making it the sixth - largest holding, which reflects the need to hedge against inflation and currency risks. The gold ETF rose nearly 19% in Q1 [9]. - Also significantly increased holdings in Baidu (+188 million shares), Pinduoduo (+50 million shares), and newly built a position in JD.com (about 278.7 million shares). It also slightly increased holdings in NIO and other Chinese concept stocks, and significantly increased the allocation of iShares MSCI Emerging Market ETF (IEMG) [10]. - Increased allocations to the financial and cyclical sectors, newly building positions in Goldman Sachs, Chubb, Bank of America, Citigroup, etc., making the financial sector the second - largest holding sector, with the weight increasing by 4.8% compared to the previous quarter [11]. 3. Top 10 Sells - Significantly reduced the position of SPDR S&P 500 ETF TR (SPY) by nearly 60%, with the holding value decreasing by about USD 2.85 billion, and the portfolio weight dropping from 22% in Q4 2024 to less than 9% [12]. - Reduced positions in large - cap technology stocks such as Google A, NVIDIA, Meta, etc., with reduction ranges between 15% - 30%. It also almost liquidated some small - and medium - sized growth stocks such as AppLovin and Robinhood [12]. - Reduced positions in healthcare companies such as Mckesson, Merck & CO, etc., and liquidated Eli Lilly, Modernam, etc. Also liquidated many stocks in the semiconductor and consumer discretionary sectors [13]. 4. Industry and Asset Allocation Changes - The industry allocation shifted from a highly concentrated technology sector to a more balanced allocation across multiple sectors such as finance and consumption, showing a more defensive and diversified trend [14]. - The proportion of commodity allocation increased, with the introduction of gold ETFs significantly increasing the proportion of precious metals in the portfolio [15]. - The financial sector became the third - largest weighted sector in Bridgewater's portfolio, with the allocation proportion increasing by 4.8% compared to Q4 2024 [15]. - The weight of the technology sector decreased relatively. Bridgewater reduced positions in some technology giants and growth stocks but still slightly increased positions in some companies with reasonable valuations or stable businesses [15]. - The medical sector was cut the most, with Bridgewater liquidating biotech companies such as Modernam due to high valuations and an unfavorable macro - environment [15]. - The consumer discretionary and other cyclical sectors showed differentiation. Bridgewater sold some consumer discretionary stocks but newly built positions in airline stocks [16]. 5. Principles Behind the Position Adjustment - Bridgewater's core investment framework is based on a long - term global macro perspective and diversified hedging. The All Weather strategy proposed in 1996 aims to build resilient portfolios. The significant increase in gold holdings reflects the principle of diversified hedging [3][17][23]. - Dalio's long - term debt cycle theory is an important basis for this position adjustment. The U.S. is in the "pre - civil war stage" of high debt and fiscal deterioration, while China is in a more favorable stage. Bridgewater's adjustment is a forward - looking layout for the "East Rising, West Declining" trend [4][18][24]. - Dalio warned about the high valuation of technology stocks, and Bridgewater reduced its technology stock allocation to avoid risks and shifted funds to more defensive or low - correlated assets [19].