By Mackenzie Tatananni

The world's largest hedge fund made changes to its portfolio in the second quarter that culminated in the sale of several major Chinese technology stocks.

Bridgewater Associates exited its investments in a handful of companies, including Alibaba, Baidu, and NIO, by the end of the second quarter, filings with the U.S. Securities and Exchange Commission show.

The fund sold 5.7 million shares of Alibaba, 2.1 million shares of Baidu, and 1.7 million shares of Nio. The firm also exited auto maker Li Auto through the sale of 12,826 shares it held in the first quarter, and exited JD.com through the sale of 2.8 million shares.

Bridgewater didn't respond to a request for comment. As of mid-July, the fund had roughly $136.5 billion discretionary assets under management.

Since July 1, Alibaba's ADR has risen 6.4%, outpacing a 4.1% gain for the S&P 500. Baidu and NIO's ADRs have gained 4.4% and 37%, respectively.

The portfolio adjustments come against the backdrop of a cooling economy in China. New yuan loans fell unexpectedly in July, representing the country's first contraction in two decades and sparking concerns about a worsening economic downturn.

While Alibaba posted solid earnings in February, it underperformed estimates in May. A myriad of rivals, including JD.com, Meituan, and Temu parent PDD Holdings, have heaped pressure on China's largest e-commerce platform.

Baidu, an artificial-intelligence heavyweight and a leader in autonomous driving, has expanded its footprint outside China through partnerships with Lyft and Uber. While Baidu broke a three-quarter streak of falling revenue in May, uncertainty persists amid competitive pressure from rivals like DeepSeek and questions over the company's ability to find new growth drivers.

NIO, the maker of electric cars, has had a similarly bumpy ride. The company reported a wider-than-expected loss in the first quarter against a backdrop of intensifying competition in the premium EV market. Deliveries came in at 21,017 vehicles for July, up 25% from last year but down from 24,925 in June.

Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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August 22, 2025 21:31 ET (01:31 GMT)

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