Bridgewater Associates, the world’s largest hedge fund, increased its stake in Tesla during the fourth quarter while trimming exposure to the so-called “Magnificent Seven” tech stocks, according to a report by Reuters, citing the firm’s latest regulatory filing.
The macro-focused fund, founded by Ray Dalio, disclosed a new position of 153,589 Tesla shares, worth $62m as of 31 December. The move comes as Tesla’s stock has struggled, dropping 13% year-to-date and over 26% since its peak on 17 December. Despite this, the stock remains up more than 30% since the 5 November US presidential election, with investors speculating that Tesla could benefit from Elon Musk’s role as head of the Department of Government Efficiency under President Donald Trump.
At the same time, Bridgewater significantly cut its stakes in other top tech names. The fund reduced its Apple holdings by 40% to 617,203 shares and slashed its Amazon stake by nearly 35%. Positions in Nvidia, Microsoft, Meta, and Alphabet were also cut by between 17.3% and 26.4%, though they still account for hundreds of millions of dollars in exposure.
In a recent letter to investors, Bridgewater’s Co-Chief Investment Officer, Karen Karniol-Tambour, highlighted the risks of concentrated positioning in AI stocks, warning that it presents “significant portfolio diversification challenges.”
These moves were revealed in the firm’s quarterly 13F filings, which provide a snapshot of fund positions as of the last day of the quarter.
