Why is Ray Dalio dumping Alibaba stock?

Some big news came out on Tuesday when legendary hedge fund manager Ray Dalio announced he was selling all his shares of Alibaba (NASDAQ:BABA, HKG:9988).

This came as a major surprise to many traders as it was reported that, up until just last week, the billionaire had been spending heavily to accumulate more shares in the Chinese e-commerce giant, which accounted for 3% of his portfolio.

Ray Dalio’s Company

Ray Dalio was born and raised in New York. He graduated from Harvard University with a degree in economics and began his career as a broker before forming Bridgewater Associates in 1975.

Bridgewater Associates is the largest hedge fund company in the world and growing. It manages more than $160 billion across all of its funds and has more than 175 team members at its headquarters in Westport, Connecticut.

Ray Dalio’s Investments

While Dalio has been busy amassing his net worth through Bridgewater Associates, he has still made plenty of time to invest directly into public companies, real estate, and even gold and silver through his family office, Ray Dalio Family Office LLC.

Dalio has been a long-time investor of Alibaba, through Bridgewater Associates, LLC.

He made one of his first buys into the company in 2012 when it was trading below its current price of just over $80 per share. Over the years, he continued to double down on his position. 

Through 2017 and 2018, Dalio bought more than 6 million shares at prices ranging from $60 o $80, however, with Tuesday’s sell-off, Dalio appears to have converted all his investment into cash for use elsewhere.

While Ray Dalio’s buying and selling of Alibaba shares do not directly dictate where the stock price will go, it appears he has become less confident about the future success of the company, at least for now.