In this article, we discuss the 10 new stock picks of billionaire Ray Dalio.
Ray Dalio is one of the famous money managers on Wall Street with a diverse portfolio that includes clients such as central banks, university endowments, as well as public and corporate pension funds. His fund, Bridgewater Associates, has been one of the most successful investment firms of the past three decades, beating the average annual return of the benchmark S&P 500 by more than four percentage points. Dalio has a personal net worth of over $20 billion and is placed amongst the top 30 richest Americans.
According to the latest 13F filings, the portfolio value of Bridgewater Associates at the end of the third quarter of 2021 was in the excess of $18 billion, up from $15 billion at the end of the second quarter, with the top ten holdings comprising 38% of the total. With investments concentrated in the consumer goods and services sectors, some of the top stocks in the portfolio included Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), and The Procter & Gamble Company (NYSE:PG), among others.
In a post on professional networking platform LinkedIn in November, posted after the US Consumer Price Index touched a record high in October, Dalio outlined some of his fears regarding inflation. The billionaire said that the United States was spending a lot more money than it was earning and paying for it by printing money that was being devalued. He said this meant that the country was going down a path of “misery and turbulence ahead”. Dalio thinks that the people who put their money in cash in this scenario will likely get hurt.
Investors who want a sneak peek into the actual moves that Dalio made at the market in light of the new developments should consider the latest changes to his portfolio. Regulatory filings show that between June and September, Bridgewater Associates made new purchases in 117 stocks, additional purchases in 343, sold out of 138, and reduced holdings in 216 equities.
The new additions to the portfolio are discussed in detail below.
Our Methodology
These stocks were picked from the investment portfolio of Bridgewater Associates at the end of the third quarter of 2021. All the stocks listed below were added to the portfolio of the fund between June and September this year.
The hedge fund sentiment around each stock was calculated using the data of 873 hedge funds tracked by Insider Monkey.
Ray Dalio of Bridgewater Associates
New Stock Picks of Billionaire Ray Dalio
10. Levi Strauss & Co. (NYSE:LEVI)
Number of Hedge Fund Holders: 30
Levi Strauss & Co. (NYSE:LEVI) markets apparel, accessories and luxury goods. The stock has rallied in the past few weeks after the firm beat market estimates on earnings for the third quarter and analysts laid out their bullish views for apparel firms ahead of the holiday season.
Latest data shows that Bridgewater Associates owned 135,430 shares of Levi Strauss & Co. (NYSE:LEVI) at the end of the third quarter of 2021 worth $3.3 million in value.
At the end of the second quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $414 million in Levi Strauss & Co. (NYSE:LEVI), up from 19 the preceding quarter worth $253 million.
Just like Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), and The Procter & Gamble Company (NYSE:PG), Levi Strauss & Co. (NYSE:LEVI) is one of the stocks that hedge funds are buying.
9. Lithia Motors, Inc. (NYSE:LAD)
Number of Hedge Fund Holders: 63
Lithia Motors, Inc. (NYSE:LAD) provides automotive retail services. According to regulatory filings, Bridgewater Associates owned 7,537 shares in the company at the end of September 2021 worth $2.3 million.
Craig-Hallum analyst Ryan Sigdahl has a Buy rating on Lithia Motors, Inc. (NYSE:LAD) stock with a price target of $520. In an investor note, the analyst has appreciated the record-breaking earnings results of the firm so far this year.
At the end of the second quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $2.9 billion in Lithia Motors, Inc. (NYSE:LAD), up from 40 in the preceding quarter worth $2.3 billion.
8. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 58
Lockheed Martin Corporation (NYSE:LMT) operates as a security and aerospace company. The firm recently announced that it had been awarded a $10.8 billion contract by the US Air Force for Advanced Raptor Enhancement & Sustainment for the F-22 program.
The hedge fund of billionaire Ray Dalio owned over 1 million shares of Lockheed Martin Corporation (NYSE:LMT) at the end of the third quarter of 2021 worth more than $7.5 million, representing a very small portion of the total portfolio of the fund.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Arrowstreet Capital is a leading shareholder in Lockheed Martin Corporation (NYSE:LMT) with 536,001 shares worth more than $202 million.
In its Q4 2020 investor letter, RiverPark Advisors, LLC, an asset management firm, highlighted a few stocks and Lockheed Martin Corporation (NYSE:LMT) was one of them. Here is what the fund said:
“Despite better-than-expected third quarter results, LMT shares were weak for the quarter as defense spending is expected to be flat for the coming year. With a record $150 billion backlog and almost 30% of its revenue coming from building F-35 aircraft with deliveries forecast to reach 180 per year in 4-5 years (3Q’s revenue upside was from the F-35), we believe LMT should grow at a higher rate than overall defense budget growth and Street expectations over the next several years. Further, strategic acquisitions (LMT acquired AJRD for $4 billion in late December), debt pay down, a 3% dividend yield, and continued share buybacks from $6 billion per year of free cash flow should lead to even greater shareholder returns.”
7. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 46
Philip Morris International Inc. (NYSE:PM) makes and sells tobacco products. At the end of the third quarter of 2021, Bridgewater Associates owned 72,137 shares in the company worth $6.8 million, representing 0.03% of the portfolio.
Amid reports that Philip Morris International Inc. (NYSE:PM) is planning to merge with Altria, another tobacco giant, the CEO of the former, Jacek Olczak, has recently come out and dismissed the suggestion, instead revealing that the company was planning to move into the cannabidiol market.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Fundsmith LLP is a leading shareholder in Philip Morris International Inc. (NYSE:PM) with 19.3 million shares worth more than $1.8 billion.
In its Q4 2020 investor letter, Fundsmith LLP highlighted a few stocks and Philip Morris International Inc. (NYSE:PM) was one of them. Here is what the fund said:
“We are impressed with Philip Morris’s development of Reduced Risk Products or RRPs, most notably its heat not burn system iQOS. It seems we are not the only ones to view it this way as it was recently included in the Dow Jones Sustainability North America Index for the first time. For the moment the shares are weighed down by COVID related disruption to some of its markets and simple prejudice which seems to prevent some commentators from weighing the benefits the RRPs bring against the obvious fact that it is a tobacco company.”
6. XPO Logistics, Inc. (NYSE:XPO)
Number of Hedge Fund Holders: 57
XPO Logistics, Inc. (NYSE:XPO) is a supply chain solutions provider. The company recently posted earnings for the third quarter, reporting earnings per share of $0.94, beating estimates by $0.01. The revenue over the period was $3.2 billion, up 22% year-on-year.
Latest securities filings reveal that Bridgewater Associates owned 31,883 shares in XPO Logistics, Inc. (NYSE:XPO) at the end of the third quarter of 2021 worth $2.5 million.
Among the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in XPO Logistics, Inc. (NYSE:XPO) with 11 million shares worth more than $1.5 billion.
In addition to Walmart Inc. (NYSE:WMT), The Coca-Cola Company (NYSE:KO), and The Procter & Gamble Company (NYSE:PG), XPO Logistics, Inc. (NYSE:XPO) is one of the stocks on the radar of institutional investors.
In its Q4 2020 investor letter, Adestella Investment Management, an asset management firm, highlighted a few stocks and XPO Logistics, Inc. (NYSE:XPO) was one of them. Here is what the fund said:
“XPO Logistics (XPO) – the XPO thesis was very simple, but it proved very successful. As the stock irrationally sold off in the spring and made only a tepid recovery in the following months, we were able to buy into a well-operated business with plenty of growth drivers at a compelling price. Sentiment surrounding the company improved thanks to a strong earnings, the resumption of asset sale plans that had been shelved in the spring, and the announcement of a spinoff to unlock the SOTP value. As the stock approached our estimate of a $115 fair value, we exited with more than a clean double from our cost basis.”
5. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 37
Moderna, Inc. (NASDAQ:MRNA) is a biotech firm that develops vaccines for people with infectious diseases. Regulatory filings show that Bridgewater Associates owned 8,309 shares in the company at the end of the third quarter of 2021 worth over $3.1 million, representing a very small portion of the portfolio.
On November 8, investment advisory Wolfe Research initiated coverage of Moderna, Inc. (NASDAQ:MRNA) stock with an Outperform rating and a price target of $304. Analyst Andrew Galler issued the ratings update.
At the end of the second quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $5.7 billion in Moderna, Inc. (NASDAQ:MRNA), down from 39 in the preceding quarter worth $1.6 billion.
In its Q2 2021 investor letter, Baillie Gifford, an asset management firm, highlighted a few stocks and Moderna, Inc. (NASDAQ:MRNA) was one of them. Here is what the fund said:
“Among the top contributors to Fund performance in the second quarter was Moderna. Moderna has just reported its first profitable quarter in the company’s history – net income for the most recent quarter was $1.2 billion. It reported revenue of $1.9 billion, an impressive increase compared to $8 million a year ago, driven by the sales of its Covid-19 vaccine. Moderna is expecting to deliver up to 1 billion vaccine doses in 2021 and is in discussions to increase global supply to governments around the world. Our long-term focus remains on the transformational potential of Moderna’s technology and its ability to address different diseases.”
4. Coursera, Inc. (NYSE:COUR)
Number of Hedge Fund Holders: 11
Coursera, Inc. (NYSE:COUR) owns and runs an online education platform. The company had passed the $100 million in quarterly revenue landmark in the second quarter this year and the earnings for the third quarter have also managed to top analyst expectations.
According to the latest data, Bridgewater Associates owned 218,862 shares in Coursera, Inc. (NYSE:COUR) at the end of September 2021 worth $6.9 million, representing 0.03% of the portfolio of the fund.
At the end of the second quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $52 million in Coursera, Inc. (NYSE:COUR), down from 25 in the previous quarter worth $119 million.
3. OptimizeRx Corporation (NASDAQ:OPRX)
Number of Hedge Fund Holders: 13
OptimizeRx Corporation (NASDAQ:OPRX) is a digital solutions firm that provides services to the health industry. Securities filings show that Bridgewater Associates owned 28,550 shares in the company at the end of the third quarter of 2021 worth $2.4 million, representing 0.01% of the portfolio.
Roth Capital analyst Richard Baldry has a Buy rating on OptimizeRx Corporation (NASDAQ:OPRX) stock with a price target of $112. In an investor note penned on November 10, the analyst highlighted a “growing pipeline of opportunities” for the firm in the months ahead.
At the end of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $66 million in OptimizeRx Corporation (NASDAQ:OPRX), up from 11 in the previous quarter worth $48 million.
In its Q3 2021 investor letter, Wasatch Advisors, an asset management firm, highlighted a few stocks and OptimizeRx Corporation (NASDAQ:OPRX) was one of them. Here is what the fund said:
“Fund holding OptimizeRX Corp. (OPRX) was up during the quarter too. The company provides digital-marketing services for pharmaceutical and other health-care-related businesses. In 2019, the company’s stock price fell based on a decline in revenue, which was partly due to the delayed digital-advertising spending of two large pharmaceutical-business clients that merged. Back then, we continued to like OptimizeRX because we were impressed with the company’s cost-effective program to engage patients, enhance their health-care experiences and improve outcomes. Our willingness to stay the course has now been rewarded with a large gain in the stock based on the revenue and earnings growth we had correctly anticipated in 2019. OptimizeRX is currently under review due to our concern that the valuation may have gotten a bit ahead of fundamentals.”
2. Pembina Pipeline Corporation (NYSE:PBA)
Number of Hedge Fund Holders: 15
Pembina Pipeline Corporation (NYSE:PBA) provides transportation services primarily to the energy industry. The company has an impressive dividend history and recently declared a monthly dividend of C$0.21 per share, in line with previous. The forward yield was 6.2%.
Bridgewater Associates owned 101,164 shares in Pembina Pipeline Corporation (NYSE:PBA) at the end of September 2021 worth $3.2 million, representing 0.01% of the portfolio.
At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $116 million in Pembina Pipeline Corporation (NYSE:PBA), the same as in the preceding quarter worth $74 million.
1. Western Alliance Bancorporation (NYSE:WAL)
Number of Hedge Fund Holders: 28
Western Alliance Bancorporation (NYSE:WAL) is a bank holding based in Arizona. Bridgewater Associates owned 38,163 shares in the company at the end of September 2021 worth $4.1 million, representing 0.02% of the portfolio of the fund.
Wells Fargo analyst Timur Braziler recently raised the price target on Western Alliance Bancorporation (NYSE:WAL) stock to $150 from $135 and kept an Overweight rating, noting the firm was “hitting on all cylinders” and the balance sheet growth was as good as any other bank.
At the end of the second quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $188 million in Western Alliance Bancorporation (NYSE:WAL), up from 23 in the preceding quarter worth $141 million.
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
Follow Insider Monkey on Twitter
Suggested Articles:
- 11 Biotech Stocks Popular On Reddit
- 10 Best Stocks to Buy According to Michael Burry
- 15 Best Penny Stocks to Buy Now
Disclosure. None. 10 New Stock Picks of Billionaire Ray Dalio is originally published on Insider Monkey.
