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NEW YORK, Nov 14 (Reuters) - Wall Street's largest hedge funds reduced exposure to some Magnificent Seven stocks, including Nvidia, Amazon, Alphabet and Meta, in the third quarter, while placing new bets in sectors such as application software, e-commerce and payments, according to the latest quarterly disclosures from the funds.

Here are key position changes by some of the funds:

Bridgewater Associates, which enjoyed a stellar run during the first nine months of the year as it outperformed all its top peers, slashed its stake in Nvidia (NVDA.O), opens new tab by nearly two-thirds to 2.5 million shares and in Alphabet (GOOGL.O), opens new tab by more than 50% to 2.65 million shares. The firm also trimmed its stake in Amazon.com (AMZN.O), opens new tab by 9.6% to about 1.1 million shares and its holdings in semiconductor industry bellwether Broadcom (AVGO.O), opens new tab by about 27% to 845,391 shares.

The firm increased its exposure to sectors such as application software and payments, as it upped holdings in names like Adobe (ADBE.O), opens new tab, Dynatrace (DT.N), opens new tab and Etsy (ETSY.N), opens new tab.

In a recent note to investors, Bridgewater's chief investment officers, Karen Karniol-Tambour, Greg Jensen and Bob Prince, warned of mounting risks to the current market stability and

Bridgewater was founded in 1975 by Dalio, who recently in the firm. The hedge fund currently has $92.1 billion in assets under management.

Discovery Capital, which was founded by Rob Citrone, took new positions in names like Alphabet, steel maker Cleveland-Cliffs (CLF.N), opens new tab, and health insurers Cigna (CI.N), opens new tab and Elevance Health (ELV.N), opens new tab.

Citrone's hedge fund, which generated a 52% windfall on its investments last year, has increased its exposure to Latin America as part of a strategy to diversify from U.S. holdings.

For the quarter ended September 30, the fund exited positions in several exploration and production companies in the energy industry such as EQT (EQT.N), opens new tab, Antero Resources (AR.N), opens new tab and Range Resource (RRC.N), opens new tab, while placing a new bet on oilfield services giant Baker Hughes (BKR.O), opens new tab. Discovery also doubled down on its bet on critical minerals producer Ramaco Resources (METC.O), opens new tab.

Citrone, who earlier this year picked Mexico's America Movil (AMXB.MX), opens new tab as his favorite stock due to its exposure to many countries in Latin America, trimmed his holdings in the company by about 11.5% to 4.68 million shares, valuing the stake at about $98.3 million.

Dmitry Balyasny's multi-strategy hedge fund Balyasny Asset Management increased its stake several-fold in iPhone maker Apple (AAPL.O), opens new tab, even as others including Berkshire Hathaway (BRKa.N), opens new tab trimmed their exposure to the tech giant.

Like a number of its top peers, Balyasny slashed its stake in Amazon by about 41%.

The firm also increased positions in insurers American International Group (AIG.N), opens new tab and Allstate (ALL.N), opens new tab, while taking a new position in digital infrastructure firm American Tower (AMT.N), opens new tab.

Tiger Global Management, founded and led by Chase Coleman, slashed its stake in Meta Platforms (META.O), opens new tab during the third quarter.

During the quarter ended September 30, Tiger Global reduced its holdings in Meta to 2.8 million shares, valuing the stake at about $2.1 billion. The firm dissolved its positions in some other high-profile names including drugmakers Eli Lilly LLY.N, opens new tab, Novo Nordisk NOVOb.CO, opens new tab and cybersecurity firm CrowdStrike CRWD.O, opens new tab.

Tiger Global, an offshoot of famed investor Julian Robertson's firm and part of a cohort of stock-picking funds popularly known as Tiger Cubs, took new positions in streaming giant Netflix NFLX.O, opens new tab and buy-now-pay-later firm Klarna KLAR.N, opens new tab.

Several changes in billionaire Philippe Laffont's Coatue Management's portfolio were around big AI names.

The firm reduced its holdings in AI industry bellwether Nvidia by 14.1% to 9.9 million shares, joining some other high-profile firms such as Bridgewater and Michael Burry's Scion Asset Management which have reduced their exposure to the company. Earlier this week, Burry said he would close his hedge fund after warning of an AI bubble in the markets.

The firm also reduced its exposure to tech stocks Tesla (TSLA.O), opens new tab, Amazon, CoreWeave (CRWV.O), opens new tab and Arm Holdings by 15.1%, 13.9%, 62.2% and 51.2%, respectively, while exiting its positions in Eli Lilly and tobacco giant Philip Morris (PM.N), opens new tab. However, Coatue upped its stakes in other Big Tech names such as Microsoft (MSFT.O), opens new tab and Meta, and increased exposure to e-commerce giant Alibaba .

Reporting by Anirban Sen in New York; Editing by Megan Davies and Leslie Adler