Dalio’s Bridgewater suffered setbacks in Chinese tech, education stocks last quarter while EV makers surged before July sell-off
- Bridgewater held depositary shares in some 37 Chinese firms with a market value of almost US$1.2 billion
- Alibaba, Pinduoduo, JD.com, NIO and Baidu, its five biggest by market value, produced a mixed bag of performances before the July tech sell-off
It bought more shares in Li Auto and Xpeng while trimming its stake in NIO, three of the biggest challengers to Tesla’s dominance in the mainland’s electric vehicle market. The surge in their stock prices helped keep the firm’s overall China play in net gain.
An attack on Didi Global, barely a week after its New York listing debut in late June, fuelled a US$1.2 trillion sector sell-off in the mainland, Hong Kong and US markets and left investors guessing on how far China will go in its pursuit to fix income inequality and stamp out malpractices.
"Bridgewater’s operations seemed to be well founded as it focused on companies like smart EV companies," said Ivan Li, a fund manager at Loyal Wealth Management based in Shanghai. China is shifting its focus from internet firms to promising manufacturers who can better use digital technologies, he added.
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It opened four new positions in consumer finance platform 360 Digitech, e-commerce delivery firm Dada Nexus, cloud-computing firm Kingsoft Cloud and carrier-neutral data centre services group Chindata Group, according to the SEC filing.
Bridgewater reported investments in 704 companies globally with a combined market value of US$15.6 billion at the end of June 30, up by US$4.25 billion from March 31. The money represented only a fraction of the US$223 billion the Westport, Connecticut firm managed for clients, including US$5.44 billion under its All-Weather China strategy fund.
Additional reporting by Daniel Ren in Shanghai