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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!