In this article, we discuss the 5 new stocks in the portfolio of billionaire Ray Dalio. If you want to read our detailed analysis of these stocks, go directly to Billionaire Ray Dalio’s Thoughts on Bitcoin and 10 New Stocks in Portfolio.
5. Huntsman Corporation (NYSE:HUN)
Number of Hedge Fund Holders: 27
Huntsman Corporation (NYSE:HUN) is ranked fifth on our list of 10 new stocks in the portfolio of billionaire Ray Dalio. The company makes and sells differentiated organic chemical products and is headquartered in Texas. According to the latest securities filings, Bridgewater Associates owned 73,676 shares in the firm at the end of the second quarter of 2021 worth $1.9 million.
In February, investment advisory Citi maintained a Buy rating on Huntsman Corporation (NYSE:HUN) stock and raised the price target to $34 from $32, appreciating the quarterly earnings results of the company.
At the end of the second quarter of 2021, 27 hedge funds in the database of Insider Monkey held stakes worth $582 million in Huntsman Corporation (NYSE:HUN), down from 35 in the previous quarter worth $735 million.
In its Q4 2020 investor letter, Madison Funds, an asset management firm, highlighted a few stocks and Huntsman Corporation (NYSE:HUN) was one of them. Here is what the fund said:
“We have increased our exposure modestly to several industrial and materials names that we believe should benefit from the reopening of the economy in 2021. One such name is Huntsman Corporation (HUN); a company we have followed for more than 15 years and have never owned before. Huntsman Corporation is a global producer of organic chemicals. The company was founded by well-known businessperson and political figure, Jon Huntsman, in 1970 and has grown through its history into a diversified portfolio of chemical businesses Our interest in Huntsman coincides with the current trough conditions in the global economy due to the Covid-19 recession. The company’s end markets are cyclical and demand for their products is highly price elastic. Additionally, the advanced materials business suffered due to the exposure to the aerospace original equipment manufacturer (OEM) down cycle. Despite these challenges, we believe management has executed well; no surprise, given their track record. We think Earnings before interest, taxes, and amortization (EBITDA) troughed in second quarter and are heartened by the lack of further deterioration in 3Q and 4Q. Looking to the future, we see an intriguing reflation opportunity driven by the resumption of economy activity in late 2021. Further, we posit that the easy monetary policy, that has characterized this cycle, has inflationary side effects which would benefit a basic materials producer such as HUN. The company has also been moving downstream to more value-added businesses, which may drive EBITDA multiple expansion in the future.”
