Billionaire Ray Dalio’s New Stock Picks for 2013: The Procter & Gamble Company (PG), The Goodyear Tire & Rubber Company (GT), Intel Corporation (INTC)

Page 1 of 2

BRIDGEWATER ASSOCIATESDuring his tenure as CEO of Bridgewater Associates, Ray Dalio was required by the SEC to disclose his fund’s positions every quarter. Although he has since stepped down (still contributing as a mentor, however), the fund continues to meet these filing obligations. The public documents can be accessed and researched by anyone, and we have done our own due diligence to see how the fund manipulated its $9.8bn in capital this past quarter. Part of our analysis has led us to find a small-cap strategy that has enabled investors to outperform the market by 18 percentage points per year (read more here). See below for our take on this giant hedge fund’s stock picks as outlined by its 13F.

The Procter & Gamble Company (NYSE:PG) was the largest of the fifty-one new purchases by Bridgewater. The company has faced some slow top-line growth and a weaker position amongst competitors in the past few years. However, PG beat the market by a few percentage points looking back twelve months, and the high dividend yield of 2.9% added income to investors’ pockets along the way. The company currently has plans to increase its footprint abroad by investing over a billion dollars in China going into the next five years. Billionaire Ken Fisher of Fisher Asset Management has nearly half a billion dollars invested in The Procter & Gamble Company (NYSE:PG) (read more about his positions here).

The Goodyear Tire & Rubber Company (NASDAQ:GT) received about $15.7mm of the fund’s assets under management, making it the second largest purchase of Bridgewater’s last quarter. The tire manufacturer gave a mostly flat performance for 2012 but has depreciated by 6.5% since the start of this year. Analysts on Wall Street are giving The Goodyear Tire & Rubber Company (NASDAQ:GT) bullish valuations a year out, allowing a possible growth of 28% if their mean price targets materialize. The company announced last month that it will be closing a tire plant in France; workers reacted by setting off flares and throwing paint bombs at the plan. Steven Cohen of SAC Capital Advisors pushed his investment up to $95mm in the stock last quarter (see his top plays here).

Intel Corporation (NASDAQ:INTC) has been giving great earnings performance after great earnings performance lately, with its most recent announcement in January of this year leading to a 6.7% beat over analysts’ predictions. INTC saw a slight decline in popularity amongst the hedge funds we track going into the end of the 2012 but still remains a moderate favorite, with more than 10% holding the tech giant. Intel continues to strike deals to make chips for clients like Cisco and Altera; talks have supposedly been held with Apple as well but nothing definitive announced. Billionaire Daniel S. Och of OZ Management has an equity position in Intel Corporation (NASDAQ:INTC) that roughly matches Bridgewaters (view his favorite stocks here).

Continue reading to see which other stocks made it into Bridgewater’s portfolio.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!