Billionaire Richard Chilton’s Favorite Retail Stocks Include Home Depot

Page 1 of 2

Even with the data in 13F filings being several weeks old by the time they are released, there are still a few different ways for investors to use this information. One way is by researching potential investment strategies; we have discovered, for example, that the most popular small cap stocks among hedge funds outperform the S& 500 by 18 percentage points per year on average (learn more about our small cap strategy). A second method is to use the names reported in 13F filings as a list of ideas and do more research on any stocks which seem like good values. We have gone through the 13F from billionaire Richard Chilton’s Chilton Investment Company and here the fund’s top five positions in retail stocks (representing a variety of verticals) as of the end of December (or see our full list of Chilton’s stock picks):

The fund increased its holdings of Dollar General Corp. (NYSE:DG) by 64% in the fourth quarter of 2012 to a total of 2.8 million shares. Dollar stores had been big hits a couple years ago but Dollar General is actually up only 8% in the last year. Sales were up 10% in its most recent fiscal quarter compared to the same period in the previous fiscal year, contributing to a 21% increase in earnings; given those growth rates, the trailing P/E of 17 is somewhat attractive. Billionaire Stephen Mandel’s Lone Pine Capital was also buying Dollar General in Q4, with the fund reporting a position of over 13 million shares in its own 13F (find Mandel’s favorite stocks).

CHILTON INVESTMENT COMPANYChilton owned 1.6 million shares of The Home Depot, Inc. (NYSE:HD) at the beginning of January. The home improvement retailer’s price is up 44% in the last year as market watchers expect an increase in housing transactions to stimulate store traffic. Indeed, Home Depot experienced double-digit growth rates of both revenue and earnings in the fiscal quarter ending in early February versus a year earlier. The stock trades at 23 times trailing earnings, meaning that the current price already includes some additional growth. Fisher Asset Management, managed by billionaire Ken Fisher, is another major holder of the stock (research more stocks Fisher owns).

See three more retailers Chilton likes, including another dollar store:

Page 1 of 2
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 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!