Bridgewater is the world's largest hedge fund, with $160 billion in assets under management, mostly from pension funds, sovereign funds, alumni endowments and other large institutions.

Since its inception in 1975, Bridgewater has earned about $57.8 billion for clients, ranking first among all hedge funds, according to LCH Investment.

Not only the scale of the income obtained is huge, but also the performance of the Qiaoshui Fund is very stable. Qiaoshui's flagship fund has had negative returns in only three of the past 28 years, and recorded significant positive returns during the economic crises of 2008 and 2009. In 2018, when the market was volatile, the Qiaoshui Fund still earned 14.6%.

Such outstanding achievements are inextricably linked to Ray Dalio, the founder of the Bridge Water Fund. His all-weather (all weather), pure alpha (pure alpha) investment strategy is unique, and his in-depth study of the economic cycle and debt crisis has also helped the Bridge Water Fund turn danger into opportunity again and again.

Ridalio also has a long history with China. As early as 1984, Dalio visited China in search of business opportunities, and sent his 11-year-old son to school in Beijing in 1995. The release of the Chinese version of the principles has also made Dalio's influence in China by leaps and bounds. In 2018, Qiaoshui Fund put on record the first private equity fund product in China Securities Investment Fund Industry Association, actively investing in China's securities market.

With a large scale, stable performance and a boss who pays close attention to the Chinese market, the investment portfolio and changes of the Qiaoshui Fund deserve the attention of the majority of investors. On Aug. 13, Bridgewater submitted its second-quarter end-of-quarter position report to the Securities Regulatory Commission, with a total market capitalization of $12.7 billion.

On the whole, among the top 10 market capitalization of US stocks held by the Bridge Water Fund, except for one gold trust, the rest are ETF. Among them, it is dominated by the emerging market index ETF, and three of the top five are emerging markets, with a total market capitalization of US $4.3 billion. The other two track the S & P 500. It seems that the index fund advocated by Buffett is also the heart of the Bridge Water Fund.

Among the top 10 stocks with market capitalization, the Qiaoshui Fund's position industry in the second quarter is relatively scattered, dominated by American companies, and mostly in energy, retail and other traditional fields. Among them, BABA ranks the third largest position in the market with a value of US $53.19 million.

The position report submitted by the Bridge Water Fund is quarterly update, from which changes in the investment portfolio can also be observed. In the ETF of its position, the changes in its position share over the past year are shown in the table below, from which we can observe the change in the views of the Bridge Water Fund on emerging markets and US markets. Among them, in addition to the fourth quarter of 2018 on the core S & P 500ETF Anshuo larger holdings, the rest of the time to track the S & P 500 ETF position adjustment is relatively small. By contrast, the emerging markets index ETF has adjusted its positions much more and more frequently.

Data source: SEC, Futu collation

Judging from the trend of the S & P 500, the timing of the significant increase in the position of the Bridge Water Fund in the fourth quarter of 2018 is very accurate. The S & P 500 saw a big rebound in the first quarter of 2019.

It is worth noting that the Bridge Water Fund released a video of a conversation between Dalio and strategist Jim Haskell at a time of increased uncertainty about the global trading environment in August. During the 30-minute exchange, Dalio elaborated on his views on the current world economy and indicated that it would be better to invest in China sooner rather than later.

Dalio is not just saying that in addition to issuing private equity products directly in China, Bridge Water Fund also introduced two new China-themed ETF in the second quarter, with a total market capitalization of US $60.37 million.

In addition, the Bridge Water Fund has invested in a lot of Chinese companies in the US stock market. In addition to BABA mentioned above, there are also the times of JD.com, NetEase, Inc, Huazhu, Baidu, Inc., Trip.com, 51job Inc and JOYY Inc.

As can be seen from the table, the Qiaoshui Fund increased its positions in these Chinese stocks in the second quarter, and the number of holdings increased by more than 200%. Among them, the Qiaoshui Fund increased its holdings of Huazhu by 470%. Huazhu shares fell sharply in the second quarter, and although they have stabilized, they have not yet broken through their previous highs.

What is worth noting are JD.com and Baidu, Inc.. After what happened to Brother Dong in the United States last year, JD.com 's share price fell all the way, but the Bridge Water Fund continued to increase its holdings without fear of risk. If the Qiaoshui Fund buys JD.com shares at the right time, it may already be a little buoyant.

Baidu, Inc. experienced a sharp fall in share prices after reporting a higher-than-expected loss in the first quarter, in which case the Bridge Water Fund still chose to increase its positions in the second quarter. However, even if Baidu, Inc. made a comeback in the second quarter, the current stock price is still hovering in the bottom area. It seems that Baidu, Inc. has also trapped the world's largest hedge fund.

Readers need to be reminded that the Bridge Water Fund's position report only discloses data as required by the US Securities Regulatory Commission and does not contain unrequired position data. Therefore, the strategy and logic of its investment are worth studying, but do not follow the trend.

The next article that follows the boss's layout of US stocks will bring you an analysis of the position of Hillhouse Capital, which focuses on the fact that High-collar Capital increased its holdings of 20.62 million shares of NIO Inc. in the second quarter.