In May, Cliff Asness’s AQR Capital Management filed its 13F for the first quarter of 2013 with the SEC. While the information on the specific number of shares it owns is likely out of date, we can see from our database of quarterly filings (which we use in our work developing investment strategies, including our finding that the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year) that AQR makes only small changes to most of its largest holdings over the course of a quarter. Read on for our quick take on its five largest positions which currently pay dividend yields of 3% or higher, or see the full list of stocks the fund reported owning.
Asness and his team reported a position of 1.8 million shares in Chevron Corporation (NYSE:CVX), making the oil and gas company their second largest 13F holding by market value. The company recently increased its quarterly dividend to $1 per share, which comes out to a 3.2% annual yield at current prices. Business has been down recently, but the stock is cheap on an earnings basis with both trailing and forward P/Es of 10. D.E. Shaw, a large hedge fund managed by billionaire David Shaw, owned 1.3 million shares of Chevron Corporation (NYSE:CVX) at the end of Q1 according to its own 13F (check out D.E. Shaw’s stock picks).
AQR increased its stake in The Procter & Gamble Company (NYSE:PG) by 3% between January and March to a total of 2.6 million shares. The diversified personal products company should be of interest to defensive investors, as it features a low beta (of 0.3) as well as a 3% dividend yield at current prices. We’d note, however, that the earnings multiples are in the high teens and recent growth in both revenue and profits has been low. The Procter & Gamble Company (NYSE:PG) is one of Warren Buffett’s favorite stocks, with his Berkshire Hathaway owning nearly 53 million shares at the end of Q1 (find Buffett’s favorite stocks).