What is Ray Dalio investing in?

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Legendary investor Ray Dalio recently completed his exit from Bridgewater Associates, selling his final shares in August after building the world's largest hedge fund over five decades. Yet his voice remains crucial as he warns of an "economic heart attack" from America's ballooning $36 trillion debt crisis.

What caught my attention this week was Dalio's stark advice: avoid property investments in this rate environment while loading up on gold at 15 per cent of your portfolio. His famous All Weather strategy still champions radical diversification across uncorrelated assets, from inflation protected bonds to commodities. He's particularly vocal about debt spirals threatening the global order, themes explored in his new book "How Countries Go Broke."

Despite stepping back from Bridgewater, the 75 year old remains remarkably prescient, having called the 2008 crisis and now positioning for what he sees as inevitable monetary turmoil ahead. On equities, he's cautiously rotating away from expensive tech giants, warning that even great companies become poor investments when overpriced. His mantra rings true: focus on pricing over popularity in today's leveraged market.

CHART 1 • Ray Dalio's $25B equity portfolio breakdown

Bridgewater Associates has dramatically reshuffled its $25 billion portfolio, making a massive contrarian bet on China while dumping American tech giants. The hedge fund expanded its Alibaba position by an astounding 3,361% to $727 million in Q1, even as Western investors fled Chinese equities. Although Ray Dalio has stepped back from the management of the hedge fund, you can clearly see his influence here.

The fund has slashed its S&P 500 ETF exposure by $3 billion and cut Nvidia holdings by 34%. This bold rotation reflects Ray Dalio’s departing beliefs on tech. The fund now spans 1,776 holdings with heavy allocations to index funds and emerging markets, maintaining that radical level of diversification that built the world's largest hedge fund.

The timing is fascinating: while everyone else chases expensive AI stocks trading at nosebleed valuations, the fund is accumulating beaten down Chinese tech at bargain prices. Its gold position has also surged, with SPDR Gold Trust becoming a major new holding worth $319 million, positioning for what Dalio warns could be an "economic heart attack" from America's debt spiral.

Source: Leverage Shares

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