NEW YORK ( TheStreet) -- Bridgewater Associates, led by discreet hedge fund manager Ray Dalio, has ramped up investments in emerging market exchange traded funds.

Half of Dailo's fund is invested in ETFs, according to a third-quarter regulatory report. His largest holding remains the SPDR S&P 500 ETF ( SPY), which mimics the returns of the S&P 500, at 35% of the portfolio. The number two and three positions are the Vanguard MSCI Emerging Markets ETF ( VWO) and the iShares MSCI Emerging Markets Index Fund ( EEM).

When everyone else is getting concerned about slowing growth in emerging economies, Dalio is turning more bullish. After all, even if China is beginning to show signs of a slowdown, growth of more than 7% is still better than what is expected in the U.S. and Europe.

Dalio bought 8.7 million additional shares of the Vanguard fund, and 6.3 million shares were added to his position in the iShares Emerging Markets Index Fund. Each is designed to mimic equity market performance in global emerging markets by investing in stocks located in countries like Brazil, Russia, China, Korea and Taiwan.

Hedge funds that manage more than $100 million are required to disclose their equity holdings, options and convertible debt on a Form 13F filed to the Securities and Exchange Commission within 45 days of the end of a quarter. Funds aren't required to report short positions betting on declines. Bridgewater Associates ended the third quarter with 395 reported holdings with a market value of $6.7 billion.

Dalio is increasing his exposure to financial and health-care companies. New purchases include Reinsurance Group of America ( RGA) and Genworth Financial ( GNW). He also bought shares of Dentsply International ( XRAY) and Mylan Inc. ( MYL).

At the same time, Bridgewater reduced its holdings of industrial and IT companies. Novellus ( NVLS), General Electric ( GE) and Applied Materials ( AMAT) were the largest reductions by market capitalization.

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