Billionaire Julian Robertson’s Small Cap Picks Include Dunkin Brands Group Inc (DNKN)

The billionaire increased his holdings of Sealed Air Corp (NYSE:SEE), which provides packaging solutions for food and beverage companies as well as general shipping needs (it owns the Bubble Wrap brand, for example) to a total of about 680,000 shares. Sealed Air’s recent revenue numbers have been about flat, and so the forward earnings multiple of 16- and that figure assumes significant increases in earnings per share both this year and next year- seems a bit high for a value stock. Billionaire David Tepper’s Appaloosa Management reported a position of 1.3 million shares of Sealed Air in its own 13F (find Tepper’s favorite stocks).

Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP) was another of Robertson’s small cap holdings with the filing disclosing ownership of about 350,000 shares. Ryman is a real estate investment trust (it focuses on hotels, convention centers, and Nashville-area attractions), and as such receives favorable tax treatment conditional on distributing a large share of taxable income to shareholders. The current dividend yield is 5.5%, though business has been struggling and it may be forced to cut its dividends. Paulson & Co., the hedge fund managed by billionaire John Paulson (though Paulson has been struggling in recent years) was another major shareholder of Ryman (see Paulson’s stock picks).

Chinese staffing company 51job, Inc. (ADR) (NASDAQ:JOBS) rounds out our list of Robertson’s small cap picks. Last quarter 51job saw its revenues come in about flat compared to the first quarter of 2012, and with margins shrinking the company’s earnings were down 10%. With the stock carrying trailing and forward P/Es of 25 and 18, respectively, we aren’t sure that the business can generate enough growth to justify the current valuation. Platinum Asset Management owned about 710,000 shares at the end of Q1; that fund is managed by billionaire Kerr Neilson (research more stocks Platinum owns).

Disclosure: I own no shares of any stocks mentioned in this article.