Ray Dalio's Bridgewater Cuts Stake In Microsoft Stock By 20% – Is Big Tech Losing Its Shine?

Ray Dalio's Bridgewater Associates recently trimmed its Microsoft Corp MSFT stake by 20% in the third quarter 2024, marking a notable reduction in a stock long considered a tech stalwart.

But Dalio isn't the only prominent investor easing back; Cathie Wood's Ark Invest also trimmed its position in Microsoft, sparking speculation on the future role of Big Tech in high-profile portfolios.

Bridgewater's Q3 Picks

Bridgewater, managing over $17.7 billion, cut its Microsoft stock holding by 220,169 shares, reducing the stock's portfolio weight from 2.54% to 2.12%, according to a Wednesday SEC filing. This shift came as Dalio's fund focused on other assets, with its top buys leaning heavily toward core index holdings, like the iShares Core S&P 500 ETF IVV, and major players in energy and semiconductor sectors, like Constellation Energy Corp CEG and Broadcom Inc AVGO.

The pivot suggests Bridgewater may be rebalancing in favor of sectors with defensive and growth-oriented plays, possibly seeking stability amid a fluctuating economic environment.

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Ark Invest's Microsoft Cutback: A Nod to Innovation Over Stability?

Wood's Ark Invest, known for its aggressive focus on innovation, also pared down its Microsoft stock holding, reducing its position by 11.05% in the third quarter.

Unlike Bridgewater, however, Ark's top buys this quarter were technology and biotech names like Tempus AI Inc TEM, Advanced Micro Devices Inc AMD and 10X Genomics Inc TXG.

The moves highlight Ark's continued commitment to emerging technology and health care, emphasizing disruptive companies over Big Tech mainstays.

Broader Implications For Big Tech In Institutional Portfolios

As both Dalio and Wood adjust their positions, the moves reflect distinct investment philosophies but raise questions about Big Tech's evolving appeal.

While Bridgewater seems to prioritize diversification and resilience, Ark's lean toward innovation shows a preference for companies positioned to drive future trends rather than rely on established giants.

This mixed approach underscores the evolving role of Big Tech in dynamic portfolios amid a rapidly shifting economic and innovation landscape.

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