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.
In the second quarter of 2025, Bridgewater Associates – the firm Dalio founded in 1975 – reported a 13F portfolio with a market value of $24.8 billion. This places the fund near its highest equity exposure in a decade. The filing showed a complete exit from Chinese equities worth about $1.1 billion substantial additions to U.S.-listed companies leading in artificial intelligence and related technologies, signaling a clear focus on innovation-driven growth..
The most notable increases were in NVIDIA, Microsoft, Alphabet, Meta, Salesdforce and Uber. These top holdings reflect Bridgewater’s continued interest in companies driving innovation and structural growth. At the same time, the portfolio retained broad market exposure through exchange-traded funds such as the SPDR S&P 500 ETF Trust and the iShares Core S&P 500 ETF, underscoring Dalio’s belief in blending targeted bets with diversified index exposure.
On the reduction side, Bridgewater trimmed positions in Apple, United Airlines, and Constellation Energy, as well as slightly reducing some ETF exposure. These adjustments suggest an effort to refine the portfolio structure to optimize the balance between growth opportunities and defensive assets.
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 Q2 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, he adapts their application as new information emerges. This adaptability was evident in Bridgewater’s Q2 2025 portfolio changes, which included a complete exit from Chinese equities and a significant increase in holdings of U.S. companies leading in artificial intelligence. These moves reflect his willingness to shift capital toward the sectors and geographies that best fit the evolving economic landscape.
Q2 2025 Changes in Detail: Ray Dalio’s Equity Portfolio
Ray Dalio’s Bridgewater Associates made significant strategic shifts in its Q2 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. Complete Exit from China
Bridgewater fully divested from its Chinese equity holdings, marking a decisive step away from the country’s internet and tech sector. The sales included:
- Alibaba Group Holding ($BABA) -$670.12M
- PDD Holdings ($PDD) -$182.85M
- Baidu ($BIDU) -$179.16M
- JD.com ($JD) -$95.09M
In total, over $1.12 billion was pulled out of Chinese equities. This move ends Bridgewater’s long-standing exposure to some of China’s largest publicly traded companies.
2. Reductions in Current Positions
Several long-held U.S. and ETF positions saw meaningful cuts:
- SPDR S&P 500 ETF Trust ($SPY) reduced by $418.37M (-21.9%)
- iShares MSCI Emerging Markets ETF ($IEMG) reduced by $98.99M (-9.36%)
- Constellation Energy ($CEG) reduced by $210.81M (-84.6%)
- Vistra ($VST) reduced by $119.65M (-49.72%)
- Apple ($AAPL) reduced by $117.86M (-62.06%)
- United Airlines ($UAL) reduced by $91.72M (-81.3%)
These reductions indicate a more concentrated positioning, especially in U.S. technology and AI leaders.
3. Big Additions to Current Positions
A defining feature of Bridgewater’s Q2 2025 moves was a set of big bets on artificial intelligence, with every major addition except Johnson & Johnson tied to AI growth.
- NVIDIA ($NVDA) +154.37% shares, $552.12M added
- Microsoft ($MSFT) +111.88% shares, $393.28M added
- Alphabet ($GOOGL) +84.08% shares, $418.73M added
- Meta Platforms ($META) +89.63% shares, $235.71M added
- Uber Technologies ($UBER) +531.15% shares, $258.66M added
The only non-AI-related major increase was Johnson & Johnson ($JNJ), up +667.79% with $305.15M added, reinforcing the portfolio’s healthcare exposure.
In total, over $2.16 billion was added to existing positions, with the majority flowing into technology giants positioned to lead the AI transformation.
4. New Positions Opened
Bridgewater also initiated several fresh stakes, diversifying further into semiconductors, software, and energy:
- Arm Holdings ($ARM) +$58.80M
- EQT Corp ($EQT) +$42.47M
- Intuit ($INTU) +$39.82M
- Barnes Group ($B) +$33.16M
- Antero Resources ($AR) +$23.76M
- Keysight Technologies ($KEYS) +$23.58M
New positions accounted for $221.59 million in total buys, signaling Dalio’s willingness to deploy fresh capital into high-potential growth and niche industrial plays.
Top 10 Holdings: Q2 2025 Equity Portfolio
As of the Q2 2025 13F filing, Bridgewater Associates’ equity portfolio was valued at $24.79 billion. The top ten holdings account for a significant share of that total, reflecting Dalio’s focus on broad market exposure paired with targeted bets on leading companies.
- SPDR S&P 500 ETF Trust ($SPY) — $1.61B
- iShares Core S&P 500 ETF ($IVV) — $1.43B
- NVIDIA Corp ($NVDA) — $1.14B
- iShares Core MSCI Emerging Markets ETF ($IEMG) — $1.03B
- Alphabet Inc. ($GOOGL) — $987M
- Microsoft Corp ($MSFT) — $853M
- Procter & Gamble Co. ($PG) — $700M
- Johnson & Johnson ($JNJ) — $682M
- Meta Platforms Inc. ($META) — $543M
- iShares Core MSCI EAFE ETF ($IEFA) — $521M
Together, these holdings represent more than one-third of the total equity portfolio’s market value, balancing index-based diversification with concentrated positions in technology and healthcare leaders.
Key Takeaways — Ray Dalio’s Q2 2025 Equity Portfolio
- Portfolio size near record highs. At $24.79B, Bridgewater’s equity portfolio is close to its largest value in the past decade.
- Full exit from China. Over $1.12B in Chinese equities sold, ending exposure to major internet and tech names like Alibaba, PDD, Baidu, and JD.com.
- Big bets on AI. Major increases in share counts for NVIDIA, Microsoft, Alphabet, Meta, and Uber show a strong tilt toward artificial intelligence and technology-driven growth.
- Healthcare remains important. Johnson & Johnson saw a 667% increase in shares, bolstering the defensive and healthcare segment of the portfolio.
- Selective reductions. Trimmed positions in SPY, Apple, United Airlines, and Constellation Energy to reallocate capital to higher-priority areas.
- Top-heavy allocation. The top 10 holdings account for more than one-third of the portfolio’s market value, combining broad ETF exposure with high-conviction single stocks.
