Core Insights - Bridgewater has significantly reduced its holdings in Nvidia by 65.3%, from 7.23 million shares to 2.51 million shares as of September 30, indicating a strategic shift towards risk management [1][3][5] - The fund has increased its investment in U.S. large-cap ETFs, with SPY holdings rising by 75.3% to 4.05 million shares, making it the largest position in the portfolio [1][9] - Bridgewater has also reduced its stakes in major tech companies like Google and Meta by 52.6% and 48.3% respectively, while also cutting back on Microsoft and Amazon [1][12] Summary by Category Nvidia Holdings - Bridgewater's holdings in Nvidia have dropped from 7.23 million shares to 2.51 million shares, a reduction of 65.3% [1][3] - This drastic cut follows a significant increase in the previous quarter, suggesting a shift from trend-following to risk management [3][5] U.S. Large-Cap ETFs - The fund has increased its position in SPDR S&P 500 ETF (SPY) by 75.3%, now holding 4.05 million shares, which constitutes 10.62% of the portfolio [1][9] - iShares Core S&P 500 ETF (IVV) has also seen an increase, now making up 6.69% of the portfolio [9][10] Reduction in Tech Holdings - Bridgewater has reduced its holdings in Google by 52.6%, Meta by 48.3%, and Microsoft by 36% [1][12] - The fund has also completely exited positions in 10 significant stocks, including Lyft and Spotify, indicating a broader strategy to divest from non-core assets [12][14] Risk Management Strategy - The adjustments reflect a clear intent to lower industry concentration and avoid overexposure to high-volatility sectors like AI and technology [10][11] - The fund aims to embrace stable cash flows from large-cap stocks during the economic late-cycle phase, which is seen as less risky compared to growth stocks [10][11] Emerging Markets and Other Investments - Bridgewater has continued to lower its exposure to emerging market ETFs, reflecting concerns over their vulnerability amid tightening global liquidity [14] - Despite the overall risk-reduction strategy, the fund has made significant increases in positions in companies like Netflix and MercadoLibre, focusing on firms with strong cash flows and stable earnings [15][16]