Hedge Fund Bridgewater Nearly Dumps Micron, Selling Over 1.3 Million Shares in a Single Quarter: Is Dalio Bearish on Memory Frenzy?

TradingKey - On the surface, Bridgewater's massive share reduction is the result of the hedge fund locking in huge profits at all-time highs and executing disciplined risk control, but a subtle bearish signal lies beneath.

According to market news on August 17, Bridgewater, the world's largest hedge fund founded by Ray Dalio, largely liquidated its position in Micron Technology (MU) stock in the second quarter. According to the latest 13F filing, as of June 30, 2026, Bridgewater reduced its Micron Technology holdings by nearly 1.36 million shares, a plunge of 92%, leaving only about 110,000 shares. Bridgewater's near-total exit has sparked heated market discussion over whether Dalio and Bridgewater are bearish on the memory frenzy.

At the end of 2025, Bridgewater heavily bought 888,000 shares of Micron stock, and added another 586,000 shares in early 2026. Following two rounds of additions, Bridgewater's holdings reached a peak of nearly 1.5 million shares in the first quarter of 2026, pushing the overall portfolio's average cost basis up to the $290–$300 range. Notably, the 13F filing submitted by Bridgewater reflects portfolio adjustments made between April and June, when Micron's stock price hit its peak near an all-time high of $1,255, generating massive profits on its position.

Bridgewater is driven by global macro and quantitative models. When a single tech stock's short-term surge causes its risk weight within the overall portfolio to become excessively high, the model automatically triggers a mandatory profit-taking liquidation mechanism, reallocating capital to assets with better risk-reward ratios.

Micron's stock price soaring severalfold within just a few quarters led to excessive exposure and risk weighting in Bridgewater's overall equity portfolio. In accordance with Bridgewater's quantitative risk control framework, the model automatically triggered a liquidation mechanism, reallocating capital back into S&P 500 ETFs (such as SPY and IVV) or defensive assets to maintain the portfolio's leverage and risk balance.

Although Bridgewater's sale was primarily for financial profit-taking, its macro models may indeed have captured potential risks in the memory frenzy more acutely than sell-side investment banks. Even though current HBM3e/HBM4 wafer capacity is fully booked through 2027, if Samsung, SK Hynix, and Micron expand capacity too rapidly later on, a concentrated release of capacity after 2027 could still bring forward the commodity supply-demand inflection point.

Although the fund and Dalio have not directly stated a bearish stance on the memory frenzy, their actions signal potential bearishness, as they not only heavily dumped Micron stock but also reduced holdings in other memory-related stocks, as shown below: