#3 Travelers Companies Inc. (NYSE:TRV)
Travelers Companies Inc. (NYSE:TRV) received more attention from billionaire hedge fund managers during the second quarter, as the number of billionaires with stakes in the stock increased to five from two quarter-over-quarter. By the same token, the value of their investments increased to $520.31 million from $294.18 million over the three-month period. This stock provides valuable evidence as to why it makes perfect sense to track billionaires’ moves. The shares of the provider of property casualty insurance have advanced by 17% since June 30, after suffering a disappointing second quarter. The stock got beaten down during the June quarter, so billionaires took advantage of that and went long. Just recently, BMO Capital Markets increased its price target on the shares of Travelers Companies to $113 from $106, following its stronger-than-expected third quarter earnings results. Cliff Asness’ AQR Capital Management was the largest shareholder of Travelers Companies Inc. (NYSE:TRV) within our database at the end of the second quarter, with 2.52 million shares.
#2 3M Co (NYSE:MMM)
The number of billionaires with positions in 3M Co (NYSE:MMM) increased to five from three during the June quarter, while the value of their investments in the company augmented to $284.25 million from $234.05 million. The stock has advanced by slightly over 1% since the end of the second quarter, but is still 5% in the red year-to-date. The shares of the diversified technology company are currently trading at a forward price-to-earnings (P/E) ratio of 18.40, compared to a ratio of 15.0 for the industrial sector. Even so, Deutsche Bank recently raised its price target on the stock to $165 from $155, citing solid third quarter results. The newly-updated price target yields an upside potential of more than 5%, so the stock may keep going higher despite trading at a seemingly rich forward P/E ratio. Edgar Wachenheim’s Greenhaven Associates is bullish on 3M Co (NYSE:MMM) as well, reporting an ownership stake of 2.25 million shares in the stock as of September 30.
#1 Caterpillar Inc. (NYSE:CAT)
Caterpillar Inc. (NYSE:CAT) is the least favored Dow stock by the billionaires observed by the Insider Monkey team. In fact, the number of billionaire hedge fund managers with stakes in the company decreased to four from six during the June quarter. Similarly, the value of these stakes decreased to $1.04 billion from $1.15 billion quarter-over-quarter. Coincidentally, the shares of the manufacturer of construction and mining equipment, diesel and natural gas engines, have declined by 12% since the end of June, so some billionaires made the right move by selling out their stakes in the company. Nevertheless, the company’s business and its stock performance in particular has suffered quite seriously over the past few years, and some billionaires’ portfolios might have been hit by this outcome as well. Phill Gross and Robert Atchinson’s Adage Capital Management owned approximately 578,000 shares of Caterpillar Inc. (NYSE:CAT) as of June 30.