Billionaire Ray Dalio’s Top 5 Small-Cap Stock Picks

4. Chegg, Inc. (NYSE:CHGG)

Value of Bridgewater Associates’ 13F Position: $9.62 million

Number of Hedge Fund Shareholders: 44

Chegg, Inc. (NYSE:CHGG) is another education-related small-cap stock in the 13F portfolio of Bridgewater. The fund held 313,402 shares at the end of 2021, a 13% increase quarter-over-quarter. 44 funds are long Chegg as of December 31, up from 35 a year earlier.

As with many other growth stocks, Chegg, Inc. (NYSE:CHGG) shares have been battered recently, being down by 69% over the last year, and there are some concerns about its long-term growth. Chegg has 6.2 million services subscribers as of the end of 2021, which represents 36% of the entire undergraduate and graduate student market in the U.S.

Chegg, Inc. (NYSE:CHGG) is making efforts to grow internationally, where it has just 1.5 million subscribers, as well as hunting out synergistic growth opportunities like its recent acquisition of language learning company Busuu, which could pair well with college students who are eager to learn new things and broaden their horizons.