Bridgewater sells 189 million shares of gold ETFs, industry insiders: There is no concept of "top escape"

Since the beginning of this year, the price of gold has repeatedly hit new highs, attracting market attention. However, surprisingly, the global hedge fund giant Bridgewater has chosen to make a quick retreat. Several gold ETFs' regular reports show that Bridgewater (China), which had been holding gold ETFs firmly since mid-2022, sold off a large amount in the first half of this year. As of the second quarter of 2024, including three gold ETFs such as E Fund, Bosera, and Huaxia Fund, Bridgewater has sold a total of approximately 189 million shares. Industry insiders believe that Bridgewater's actions are more tactical considerations and short-term changes in allocation needs, rather than trying to sell at the peak, as the long-term allocation of gold prices has always been a factor. According to Wind data, as of the end of 2023, Bridgewater (China) held three gold ETFs under its three Bridgewater All Weather Enhanced China Private Equity Funds, namely E Fund Gold ETF (159934), Gold ETF (518880), and Gold ETF Fund (159937), with a total holding of approximately 189 million shares. However, as of the end of the second quarter of this year, the company's products have exited the top ten holders of the three gold ETFs mentioned above. Bridgewater Fund has always been known for its "smart money" reputation. Industry insiders believe that Bridgewater's massive sale of ETFs may be related to its "all-weather" strategy. This strategy aims for long-term stable growth, and the significant selling of gold in the first half of the year may simply be to "lock in profits." When the price of gold is at historical highs, institutions often choose to take profits to protect against potential losses from market corrections. However, there are still many institutions optimistic about the future of gold. Guotai Fund stated that with the current fundamentals, the gold price hitting historical highs may amplify short-term market volatility, and there may be a risk of a pullback if the market expects a rate cut by the Federal Reserve in September to materialize. However, the overall direction of the Federal Reserve maintaining a "loose + economic roller-coaster decline" trend remains unchanged in favor of the gold price.