Bridgewater Associates sells 189 million shares of gold ETF, industry insiders: There is no concept of "topping out"

According to the latest information from Zhitong Finance and Economics APP, gold prices have repeatedly hit new highs this year, attracting market attention. However, surprisingly, the global hedge fund giant Bridgewater has chosen to rapidly retreat. Several gold ETFs' regular reports show that since mid-2022, Bridgewater (China), which had been steadfastly holding gold ETFs, has sold a large amount in the first half of this year. As of the end of the second quarter of 2024, including three gold ETFs such as E Fund, Bosera, and Huaxia, Bridgewater has sold a total of approximately 189 million shares. Industry insiders believe that Bridgewater's actions are more related to company tactical considerations and short-term changes in allocation needs, rather than trying to time the market top, as the long-term allocation of gold prices always exists.

Wind data shows that as of the end of 2023, three Bridgewater All Weather Enhanced China Private Equity Funds under Bridgewater (China) held three gold ETFs, namely E Fund Gold ETF (159934), Gold ETF (518880), and Gold ETF Fund (159937), with a total holding of approximately 189 million shares. However, by the end of the second quarter of this year, the company's products had exited the top ten holders of the aforementioned three gold ETFs.

Bridgewater Fund has always been known for its "smart money" reputation. Industry insiders believe that Bridgewater's large-scale sale of ETFs may be related to its "All Weather" strategy. This strategy aims for long-term stable appreciation, and the significant selling of gold in the first half of the year may be just to "lock in profits." When gold prices are at historical highs, institutions often choose to take profits to prevent losses from market adjustments.

However, there are still many institutions that remain optimistic about the future of gold. Guotai Fund stated that currently, from a fundamental perspective, with gold prices reaching historical highs, short-term market trading volatility may increase. If the market expects a rate cut by the Federal Reserve in September, there may be a risk of a pullback. However, the overall direction of the Federal Reserve maintaining "loose monetary policy + economic rolling decline" remains unchanged, which is favorable for the trend of gold prices