FTSE 100 today: Index rises, pound strengthens; Tullow Oil slumps, Hiscox rises
Investing.com -- Bridgewater Associates, a prominent hedge fund, has increased its portfolio by acquiring shares of Tesla (NASDAQ:TSLA), the electric carmaker led by Elon Musk, while simultaneously reducing its exposure to other U.S. tech and growth stocks. This information was revealed in a recent regulatory filing.
By the end of December, the firm, founded by investor Ray Dalio, held a small stake in Tesla, consisting of 153,589 shares valued at $62 million. Despite Tesla shares experiencing a decrease of about 13% this year and more than 26% since their record closing high on December 17, they have still seen an overall increase of over 30% since the presidential election on November 5. This is thought to be due to Musk's close relationship with President Donald Trump, as Musk is currently leading the Department of Government Efficiency, responsible for reducing waste from federal agencies.
In contrast, Bridgewater Associates has made significant cuts in its other tech stocks, collectively known as the "Magnificent Seven". The firm has reduced its stake in Apple (NASDAQ:AAPL) by 40%, leaving it with 617,203 shares, and its position in Amazon (NASDAQ:AMZN) has been decreased by almost 35%. The firm's holdings in Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META), and Alphabet (NASDAQ:GOOGL) have also been cut, with reductions ranging between 17.3% and 26.4%, although these positions are still worth hundreds of millions of dollars.
These details regarding the fund's positions were revealed in quarterly securities filings known as 13Fs. Although these documents provide a retrospective view, they offer a glimpse into what funds owned on the last day of the quarter and serve as one of the few ways hedge funds and other institutional investors disclose their holdings. However, these filings do not provide the exact timing of purchases or sales and may not accurately represent current holdings.
Bridgewater Associates has not yet provided a comment on these portfolio changes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.