Ray Dalio's Bridgewater Dumps Nvidia, Apple and Amazon: Buys Into Oil and Energy

Bridgewater Associates, founded by billionaire investor Ray Dalio, sold millions of shares of Mag 7 stocks that are leading the AI race. According to the latest 13F-HR filing with the US Securities and Exchange Commission, the hedge funds sold shares of Nvidia, Apple, Amazon, Alphabet, and Microsoft in Q2, while piling into oil and energy companies like Shell, Vistra Corp., Petroleo Brasileiro (Petrobas), and PG&E Corp.

Known for its risk parity, 'Pure Alpha,' and 'All Weather' investment strategies, the hedge fund has been aggressively reshaping its holdings amid dynamic market conditions.

Bridgewater Associates was shaped by Dalio's strategies around risk parity to balance risks across asset classes, 'Pure Alpha' to attain maximum return-to-risk ratios via active management, and the 'All Weather' investments for consistent returns regardless of the economic landscape.

Bridgewater Cuts Stake in Amazon by 50%, Apple by 35%

For the quarter-ended 30th June, the hedge fund sold around 2.4 million shares of Amazon, cutting its stake in the AI and e-commerce giant by 53.8%. It still holds about 2 million shares of Amazon.

Bridgewater also lowered its stake in Nvidia during the quarter by 17.6% or around 827,000, despite massive AI and infrastructure deals, including its recently disclosed agreements with Elon Musk's SpaceX.

The hedge fund's Apple stake also fell by 35% or about 199,000 shares in Q2, while Microsoft and Alphabet positions were reduced by 34.3% and 33.8%, respectively.

The offloading of Mag 7 stocks coincides with a cooling AI-led stock market rally, averaging modest year-to-date gains compared with last year, as extreme infrastructure spending amid geopolitical volatility and surging demand drove performance concerns within the group.

Bridgewater Bets on Oil, Energy Despite Hormuz Deadlock

In Q2, Bridgewater Associates ramped up its stake in Shell by 388% or 1.2 million shares. It also boosted its Vistra Corp. position by 115% or around 403,000 shares, and in the Brazilian majority state-owned Petrobas by 466% or 5.4 million.

However, one of the biggest trades was purchasing 5.9 million shares of Pacific Gas & Electric Company, boosting stock position by a whopping 24,078%.

These investments in the oil and energy sector came as Iran reportedly indicated last week that it does not expect to negotiate with US President Donald Trump until his tenure in office ends on 20th January 2029.

'Trump will not reach an agreement with us. We will accompany him until his term ends,' said Majid Shakeri, an adviser to Parliament Speaker Mohammad Bagher Ghalibaf, adding that Tehran should avoid military escalation as well as a settlement under current circumstances. 'The path to victory is neither fighting nor a deal, it is managing the process of neither war nor peace, up to the point of victory,' he had added.

Concurrently, an Islamic Revolutionary Guard Corps spokesperson, Hossein Mohebi, reportedly said Tehran would not reopen the Strait of Hormuz until the US accepts Iran's conditions, adding that the strait had become 'a theatre of war for us and not just a waterway.'

Meanwhile, Trump told a media outlet that the US is 'only semi-negotiating' with Iran, after insisting that the countries were in fact holding talks.

'We are just watching Iran with its huge inflation and the fact that they have no money,' Trump had told Axios. Note that the US President cancelled a planned attack against Iran on 1st August to allow for negotiations.

Dalio had even warned that the US could lose the war with Iran if it fails to break the Hormuz blockade.

'When the world's dominant power that has the world's reserve currency is overextended financially, and it reveals its weakness by losing both military and financial control, watch out for allies and creditors losing confidence, the loss of its reserve currency status, the selling of its debt assets, and the weakening of its currency, especially relative to gold,' Dalio had stated.