Billionaire Richard Chilton’s Top Stock Picks Include Dollar General Corp. (DG)

Page 1 of 2

Insider Monkey tracks quarterly 13F filings from hundreds of hedge funds, including billionaire Richard Chilton’s Chilton Investment Company- whose most recent filing discloses positions in Sherwin-Williams Company (NYSE:SHW) and Dollar General Corp. (NYSE:DG).

We’ve found that investors can use 13Fs in a number of ways. First, they provide information which can be helpful in developing investment strategies: the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year (learn more about our small cap strategy) and our own portfolio using this strategy has outperformed the S&P 500 by 33 percentage points over the last 11 months. Second, even if an investor doesn’t want to blindly follow a manager’s picks these stocks can be useful as initial investment ideas. Read on for our thoughts on the five largest positions in Chilton’s portfolio as of the end of June and compare these picks to previous filings.

The fund’s top pick is still specialty chemicals company W.R. Grace & Co. (NYSE:GRA); the company’s products include “cracking” catalysts used by refiners in the production of transportation fuels. W.R. Grace & Co. (NYSE:GRA)’s earnings rose by nearly 20% last quarter compared to the second quarter of 2012, though sales were actually down slightly and we would be concerned that earnings growth coming entirely from higher net margins is unsustainable. Tiger Cub John Griffin’s Blue Ridge Capital had owned 3 million shares of the stock at the end of the first quarter of 2013 (research more stocks Blue Ridge owned).

CHILTON INVESTMENT COMPANYPaint and coatings manufacturer and retailer Sherwin-Williams Company (NYSE:SHW) was another of Chilton’s favorite stocks. The company has become seen as a way to play the housing market, as paint and finish jobs are common for sellers and flippers of houses as well as for eventual buyers to make desired changes. The stock is up over 130% in the last two years. With moderate growth in the financials, this has resulted in trailing and forward P/Es of 27 and 19 respectively which may be a bit high. Renaissance Technologies, founded by billionaire Jim Simons, had been buying the stock earlier this year (see Renaissance’s stock picks).

Chilton and his team added a small number of shares of Dollar General Corp. (NYSE:DG) since their previous 13F filing for a total of 3.1 million shares. As a dollar store, the company has little exposure to the overall economy and so the stock’s beta is only 0.1. Dollar General Corp. (NYSE:DG) trades at 19 times trailing earnings, so markets have priced in some future growth; profits rose only 3% in its fiscal Q1 (which ended in early May) versus a year earlier. Lone Pine Capital, managed by billionaire and Tiger Cub Stephen Mandel, has been another major shareholder in Dollar General Corp. (NYSE:DG) (find Mandel’s favorite stocks).

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 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!