Portfolio Overview - Bridgewater's total portfolio value increased from $24.8 billion in 2Q25 to $25.5 billion in 3Q25, a rise of 3%[1] - The number of positions expanded significantly to 1014, up from 585 in the previous quarter[1] - The share of the top 10 holdings decreased from 36.1% to 32.5%[1] Investment Strategy - Increased allocation to S&P 500 ETFs, with iShares S&P 500 ETF (IVV) becoming the largest holding at $2.71 billion, representing 10.6% of the portfolio[1] - Combined weight of S&P 500 ETFs reached approximately 17.3%, a notable increase from the previous quarter[1] - Emerging market ETF exposure was nearly eliminated, indicating a shift in strategy[1] Sector Adjustments - Significant reductions in holdings of major tech stocks, including Nvidia (down 65%), Alphabet (down 53%), and Microsoft (down 36%) to lock in profits[1] - Full exit from SPDR Gold Trust, reflecting a tactical profit-taking move after a strong price rally[1] - The portfolio remains biased towards information technology but has shifted to a more balanced allocation across sectors[1] Notable Transactions - Major increases in positions included Lam Research (+111%), Mastercard (+191%), and Workday (+132%) among others[1] - New positions initiated in Reddit and Robinhood, contributing to a more diversified portfolio with 493 new holdings[1] Risk Management - The strategy reflects a commitment to dynamic balance and risk-aware positioning in an uncertain economic environment[1] - The overall approach aims to enhance portfolio resilience by reducing concentration and broadening holdings[1]

Core Viewpoint - The article discusses three methods to control market volatility risk: dollar-cost averaging, diversification, and position control [2][11]. Group 1: Methods to Control Volatility Risk - **Method 1: Dollar-Cost Averaging** Persisting with dollar-cost averaging during periods of unrealized losses helps to lower the average cost of holdings, allowing for profitability without needing the market to return to previous levels [2]. - **Method 2: Diversification** Different types of stock assets exhibit varying levels of volatility risk, with individual stocks being the most volatile, followed by sectors, broad indices, and fund combinations. A diversified portfolio can mitigate risk by investing in a basket of undervalued funds [2][11]. - **Method 3: Position Control** The article presents a table showing the relationship between stock-bond ratios, maximum drawdown, and annualized returns. Higher stock ratios generally lead to higher long-term returns but also increase volatility risk [3][11]. Group 2: Monthly Treasure Combination - **Composition of Monthly Treasure** The Monthly Treasure combination consists of 40% stock funds and 60% bond funds, designed to meet the needs of conservative investors [5][11]. - **Stock Portion Characteristics** The stock portion focuses on value styles, characterized by lower volatility in bear markets and higher dividend yields, providing stable income regardless of market fluctuations [6][11]. - **Bond Portion Characteristics** The bond portion primarily invests in short- to medium-term bonds, which are less affected by interest rate changes. The current yield for 10-year government bonds is around 1.7%-1.8%, indicating lower attractiveness for long-term pure bonds [6][11]. Group 3: Rebalancing Strategy - **Automatic Rebalancing** The Monthly Treasure combination employs an automatic rebalancing strategy based on valuation, which facilitates "buy low, sell high" actions without requiring investor intervention [8][11]. - **Recent Rebalancing Actions** The article details two recent rebalancing actions, highlighting the strategy of selling outperforming assets and reallocating to underperforming ones to maintain the target asset allocation [9][11]. Group 4: Cash Flow Feature - **Flexible Cash Flow Functionality** The Monthly Treasure combination includes a feature for periodic cash flow distribution, which can be easily turned on or off based on the investor's needs, providing flexibility for long-term investment [10][11].

Core Insights - The article narrates the dramatic trading journey of Guan Fujun, who transitioned from a novice trader to a successful one, experiencing multiple failures and recoveries in the futures market [2][6][10] Group 1: Trading Journey - Guan Fujun began his trading career in 1999 with an initial capital of 40,000 yuan, making his first trade by shorting rubber, which led to his first margin call and a significant loss [2][5] - Despite facing four major bankruptcies, including a severe loss in 2003 when he shorted soybean meal, Guan continued to pursue trading, driven by a fascination with the market [5][6] - In 2004, after a period of research and learning, he successfully turned 5,000 yuan into 25 million yuan by adhering to a strategy based on weekly trends [6][9] Group 2: Trading Philosophy - Guan's trading philosophy is centered around three key principles: 1. Weekly theory, which helps filter out short-term noise and reflects medium-term trends [9] 2. Risk control, emphasizing the importance of stop-loss orders to protect overall capital [9] 3. Integration of knowledge and action, ensuring that long-term training leads to instinctive responses in trading [10] Group 3: Challenges and Setbacks - Guan faced significant setbacks, including a disastrous shift to short-term trading that resulted in substantial losses during the cotton market surge in 2010 and 2011 [7][8] - His gambling habits led to a depletion of his wealth, with his account dwindling to a few thousand yuan at one point [8] Group 4: Recovery and Success - After a period of reflection and recovery, Guan re-entered the market with 13.8 million yuan and achieved remarkable returns, including a 70-fold increase from 3.5 million yuan to 294 million yuan between August 2021 and February 2022 [8][9]