Ray Dalio has spent nearly five decades refining an investment philosophy built on diversification, disciplined risk management, and the idea that the global economy functions like an economic machine. Known for creating the All Weather Portfolio and pioneering the risk parity approach, Dalio aims to balance portfolio risk so no single economic scenario overwhelms returns. His strategies focus on asset allocation that can withstand market uncertainty, improve long-term performance metrics, and keep volatility in check.
Although Dalio has stepped down from day-to-day management at Bridgewater Associates, the firm he founded in 1975 continues to reflect much of his thinking. His influence is still visible in how Bridgewater allocates capital, balances risk across regimes, and adapts to shifting macro conditions.
In Q3 2025, Bridgewater reported a 13F equity portfolio valued at $25.53 billion, one of its highest equity exposures in years. This quarter marked a decisive portfolio rotation: the firm cut back exposure to the Magnificent 7, including significant reductions in NVIDIA, Microsoft, Alphabet, and Meta, and almost fully exited Emerging Markets, eliminating positions tied to China and broad EM ETFs. At the same time, Bridgewater increased its exposure to the S&P 500 through IVV, strengthening the portfolio’s core U.S. equity base. Bridgewater also closed its gold exposure through the sale of GLD, removing one of its remaining defensive hedges.
The most notable additions this quarter were concentrated in AI infrastructure, enterprise software, and semiconductor supply chains. Bridgewater increased positions in Lam Research, Adobe, Workday, ServiceNow, and Salesforce, allocating more capital to names where valuations had reset to levels that better reflect long-term earnings power. These moves were offset by a deep reduction in Emerging Markets exposure, including a 93%t cut to EM ETFs. China had already been exited in the prior quarter, so the current shift reflects a broader pullback from the EM complex rather than new country-specific selling. Taken together, the repositioning signals a preference for higher-quality U.S. growth assets with cleaner fundamentals and more predictable return profiles.
Bridgewater continues to rely on broad ETFs such as SPY and IVV, maintaining its blend of diversified index exposure and targeted high-conviction positions. But the Q3 filing makes one thing clear: the firm is shifting toward a more value names, with less concentration in mega-cap tech momentum and greater emphasis on broad U.S. exposure, durable value, and companies positioned to benefit from long-term AI adoption.
In the sections ahead, we will explore Ray Dalio’s background, his core investment philosophy, and how those principles translate into real-world portfolio decisions. You will see a detailed breakdown of Bridgewater’s Q3 2025 13F filing, including its top holdings, the largest additions and reductions, and the reasoning behind these moves. By the end, you will understand not only what Bridgewater owns, but why these positions fit into Dalio’s broader approach to managing risk and navigating market uncertainty.
Who Is Ray Dalio
Ray Dalio founded Bridgewater Associates in 1975 in a small New York apartment. The firm began as a research and advisory service and grew into the largest hedge fund in the world, managing capital for sovereign wealth funds, pension systems, endowments, and major global institutions. Over the decades, Dalio became one of the biggest names in portfolio management, recognized for his ability to combine macroeconomic insight with disciplined investment execution.
His interest in investing started early. At the age of 12, Dalio bought his first stock, Northeast Airlines, using money he earned working as a golf caddie. That experience led to a lifelong interest in understanding how markets operate. He later studied finance at Long Island University and earned his MBA from Harvard Business School. Early successes and failures in his career helped shape the disciplined, research-driven approach he follows today.
Under Dalio’s leadership, Bridgewater became known for its deep macroeconomic research and systematic investment strategies. He introduced a culture of “radical transparency,” which encouraged open debate and direct feedback within the firm. This culture became a cornerstone of Bridgewater’s ability to adapt and remain competitive through different market cycles.
Beyond running Bridgewater, Dalio has become a respected public voice on economic and market issues. He frequently shares insights on market cycles, debt dynamics, and geopolitical developments. His perspectives are followed by investors, policymakers, and business leaders worldwide.
Ray Dalio’s Investment Philosophy
At the core of Ray Dalio’s investment philosophy is the belief that markets cannot be predicted with perfect accuracy, but they can be prepared for with careful planning and a resilient portfolio structure. He is best known for creating the All Weather Portfolio, a strategy built to balance assets so that the portfolio performs reasonably well in a wide range of economic environments. The approach is rooted in the concept of risk parity, where different asset classes are weighted to equalize their contribution to overall portfolio risk.
Dalio stresses the importance of diversification, not only across asset classes such as stocks, bonds, commodities, and inflation-linked securities, but also by geography, sector, and macroeconomic sensitivity. This broad spread helps manage risk, reduce the standard deviation of returns, and avoid overreliance on any single market or source of return.
A defining element of his strategy is the study of historical economic patterns. Dalio often says that most market events are variations of past occurrences. By examining centuries of market and economic data, he identifies recurring cycles and cause-and-effect relationships. This historical perspective allows him to position portfolios to take advantage of conditions that are likely to reappear.
Flexibility is another key principle. While Dalio’s core beliefs remain constant, their application evolves as conditions change. This adaptability is visible in Bridgewater’s Q3 2025 positioning. After fully exiting China in the prior quarter, the firm continued to reallocate capital away from Emerging Markets, Gold and Magnificent 7, and redirected it toward broad U.S. exposure and select AI-driven enterprise and semiconductor names. The shifts show a willingness to reposition when the risk-return profile moves, aligning the portfolio with sectors and geographies that offer cleaner fundamentals and more reliable long-term performance.
Q3 2025 Changes in Detail: Ray Dalio’s Equity Portfolio
Ray Dalio’s Bridgewater Associates made significant strategic shifts in its Q3 2025 equity portfolio, reflecting changes in global economic outlook, sector trends, and macro positioning. The firm’s SEC Form 13F filing reveals four major areas of activity.
1. Full Closures: Gold and Spotify Lead a Sweep of Legacy Positions
Bridgewater opened Q3 by closing several positions outright, but two exits stood out as the most meaningful:
- SPDR Gold Trust (GLD). The fund fully unwound its gold exposure, removing one of its last macro hedges. This signals a clear shift away from defensive stores of value and toward higher-conviction equity deployment. Gold has historically been a cornerstone in Bridgewater’s risk-balanced framework, so eliminating GLD marks a deliberate move toward a more return-seeking posture.
- Spotify (SPOT). Spotify was fully closed after a strong run that pushed valuations well ahead of forward earnings power. The exit reflects Bridgewater’s move away from high-multiple consumer internet names where momentum has outpaced fundamentals. Closing SPOT frees capital for areas with better risk-adjusted upside and clearer long-term cash flow trajectories.
Bridgewater also closed positions in Arm Holdings, Constellation Energy, Lyft, and several smaller holdings. These exits reflect a broader effort to step out of areas where valuations no longer offered compelling risk-reward. By trimming names that had rerated aggressively, the firm freed capital for segments of the market trading at more reasonable multiples and offering cleaner long-term fundamentals.
2. Deep Cuts: Emerging Markets and the Magnificent Seven
SBridgewater’s largest reductions in Q3 were concentrated in Emerging Markets and the Magnificent Seven. The cuts released billions in capital and reshaped the portfolio’s risk profile.
- Emerging Markets. The position in the iShares Emerging Markets ETF (IEMG) was reduced by 93.2%, eliminating almost all remaining EM exposure. The sale generated approximately $1.0 billion, completing the firm’s multi-quarter withdrawal from Emerging Markets after exiting China in Q2. This was one of the largest single monetizations in the entire filing.
- Magnificent Seven. Bridgewater also took down several mega-cap tech holdings where valuations had expanded sharply. NVIDIA was reduced by $822.64 million, Alphabet by $617.18 million, Microsoft by $315.20 million, and Meta by $290.38 million. These cuts lowered concentration in names that had dominated the portfolio and freed capital for more attractively valued opportunities elsewhere in the U.S. market.
Together, these reductions pulled significant capital out of crowded trades and lowered exposure to the highest-multiple segments of global equities.
3. Major Additions: S&P 500 Exposure and High-Quality U.S. Growth
Bridgewater’s additions in Q3 centered on rebuilding broad U.S. exposure and allocating into companies where valuations had reset to more compelling levels.
- S&P 500 Exposure (IVV). The most significant single addition was the iShares Core S&P 500 ETF (IVV). Bridgewater increased its position by 75.3%, adding roughly $1.12 billion to the fund. This move strengthens the portfolio’s core U.S. equity base and reflects a shift toward broad-market exposure at a time when select mega-cap valuations had become stretched.
- Attractively Valued U.S. Growth Names. The firm also added to a group of high-quality companies tied to software, payments, and semiconductor supply chains. Lam Research saw $193.25 million in additions, Adobe $191.28 million, Mastercard $138.04 million, Workday $136.78 million, and Sea $125.55 million. These additions target businesses with durable earnings power, cleaner balance sheets, and valuations that had compressed to more appealing entry points.
The pattern is clear. Bridgewater rotated capital out of crowded mega-cap tech trades and Emerging Markets and redeployed it into broad U.S. exposure and select growth names with stronger long-term fundamentals and more reasonable multiples.
4. New Positions Opened
Bridgewater also initiated several new positions in Q3, expanding into software, components, and digital platforms aligned with long-term technology adoption. The largest new stakes were:
- Reddit ($RDDT) +$125.97M
- Amphenol ($APH) +$80.68M
- Autodesk ($ADSK) +$46.48M
- monday.com ($MNDY) +$45.92M
- Credo Technology Group ($CRDO) +$43.18M
In total, these new positions accounted for over $750 million in fresh capital deployment. The selections highlight Bridgewater’s focus on companies with strong recurring revenue, mission-critical products, and exposure to digital infrastructure. The moves broaden the portfolio into areas where growth visibility remains high and valuations offer cleaner long-term risk-reward.
Top 10 Holdings: Q3 2025 Equity Portfolio
As of the Q3 2025 13F filing, Bridgewater Associates reported an equity portfolio valued at $25.5 billion. The top ten holdings represent a substantial share of that total and show a clear shift toward broader U.S. exposure paired with selective bets in software, semiconductors, and essential services.
- iShares Core S&P 500 ETF (IVV) — $2.71B
- SPDR S&P 500 ETF Trust (SPY) — $1.71B
- Alphabet (GOOGL) — $645.16M
- Microsoft (MSFT) — $568.28M
- Salesforce (CRM) — $475.67M
- NVIDIA (NVDA) — $468.27M
- Lam Research (LRCX) — $463.83M
- Adobe (ADBE) — $445.42M
- Booking Holdings (BKNG) — $419.69M
- GE Vernova (GEV) — $400.36M
Taken together, these holdings account for less than one-third of the entire equity book. The composition shows Bridgewater leaning heavily into broad S&P 500 exposure through IVV and SPY, while maintaining focused positions in key AI, software, and semiconductor names. The mix reflects the firm’s balance between diversified index exposure and targeted allocations to companies with strong pricing power, recurring revenue, and long-term structural growth drivers.
Key Takeaways — Ray Dalio’s Q2 2025 Equity Portfolio
- Portfolio size at a decade high. At $25.53B, Bridgewater’s equity book is one of its largest in ten years, reflecting a deliberate move toward higher U.S. equity exposure.
- Broad exit from Emerging Markets. The firm eliminated nearly all EM exposure with a 93 percent reduction in IEMG, freeing close to $1B and completing the multi-quarter withdrawal that began with China exits in Q2.
- Sharp reductions in the Magnificent Seven. NVIDIA, Microsoft, Alphabet, and Meta were cut heavily, removing over $2B in combined exposure. The reductions lowered concentration in mega-cap tech after a period of stretched valuations.
- Significant increase in S&P 500 exposure. IVV saw more than $1.1B in new capital, signaling a renewed emphasis on broad U.S. market exposure as Bridgewater rebalanced away from crowded mega-cap trades.
- Additions focused on attractive valuations. Capital was redeployed into software, payments, and semiconductor supply chains, including Lam Research, Adobe, Workday, and Mastercard. These names offered cleaner long-term fundamentals at more reasonable entry points.
- Full closures in legacy and defensive positions. Gold (GLD) and Spotify (SPOT) were fully exited, along with several smaller positions, removing lower-conviction holdings and freeing capital for higher-quality opportunities.
- Top holdings remain concentrated in U.S. equities. IVV and SPY now anchor the portfolio’s structure, and the top 10 holdings continue to represent less than one-third of total equity value.
