Ray Dalio (Trades, Portfolio) founded Greenwich, Connecticut-based hedge fund Bridgewater Associates in 1975. Now it has more than $165 billion under management. The firm claims 13% annual returns after fees.
Dalio owns 341 stocks with a total value of $7.977 billion. The following are his best-performing investments of the year.
Applied Materials Inc. (AMAT), with a market cap of $30.61 billion, has gained 54% year to date. The guru's holding represents 0.04% of the company's outstanding shares and 0.14% of his total assets.
Applied Materials provides manufacturing equipment, services and software to the semiconductor, flat panel display, solar photovoltaic and related industries.
It is trading with a price-earnings (P/E) ratio of 22.15; over the last 12 months the price has risen by 75%, trading now 8.85% below its 52-week high and 83.42% above its 52-week low. The stock is overpriced by 107% at $28.32. The DCF calculator gives a fair value of $13.7. The Peter Lynch earnings line gives a fair value of $19.2.
It has a profitability and growth rating of 8 out of 10 with strong returns (ROE 20.02% and ROA 10.55%) that are outperforming 86% of the competitors in the Global Semiconductor Equipment & Materials industry. Financial strength has a rating of 6 out of 10 with a cash to debt of 0.98 that is below the industry median of 1.62.
The largest shareholder among the gurus is Bill Nygren (Trades, Portfolio) with 0.84% of outstanding shares followed by PRIMECAP Management (Trades, Portfolio) with 0.56%, Jim Simons (Trades, Portfolio) with 0.49%, Jerome Dodson (Trades, Portfolio) with 0.05%, Caxton Associates (Trades, Portfolio) with 0.05% and Dalio with 0.04%.
Canadian Natural Resources Ltd. (CNQ), with a market cap of $36.43 billion, has gained 54% year to date. The guru's position represents 0.05% of the company's outstanding shares and 0.21% of his total assets.
Canadian Natural Resources is a senior independent energy company. The company is engaged in the acquisition, exploration, development, production, marketing and sale of crude oil, NGLs and natural gas.
It is trading with a price-book (P/B) ratio of 1.80; over the last 12 months the price has risen by 38%, trading now 0.45% below its 52-week high and 126.51% above its 52-week low.
The company has a profitability and growth rating of 5 out of 10 with negative returns (ROE -1.56% and ROA -0.71%) that are outperforming 79% of the competitors in the Global Oil & Gas E&P industry. Financial strength has a rating of 4 out of 10 with a cash to debt of 0.03 that is below the industry median of 0.45.
First Eagle Investment (Trades, Portfolio) is another notable shareholder among the gurus with 0.45% of outstanding shares followed by Dalio with 0.05%, Steven Cohen (Trades, Portfolio) with 0.04% and Jeremy Grantham (Trades, Portfolio) with 0.04%.
With a market cap of $21.64 billion, Cummins Inc. (CMI) has gained 41% year to date. The guru's holding represents 0.02% of outstanding shares and 0.04% of his total assets.
Cummins designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products.
It is trading with a price-earnings (P/E) ratio of 17.47; over the last 12 months the price has risen by 18%, trading now 2.09% below its 52-week high and 60.62% above its 52-week low. The stock is undervalued with a margin of safety of 8% at $128.3. The DCF calculator gives a fair value of $139.89. The Peter Lynch earnings line gives a fair value of $110.3.
The company has a profitability and growth rating of 7 out of 10 with strong returns (ROE 17.23% and ROA 8.27%) that are outperforming 82% of the companies in the Global Diversified Industrials industry. Financial strength has a rating of 7 out of 10 with a cash to debt of 0.68 that is below the industry median of 1.09.
The largest shareholder among the gurus is HOTCHKIS & WILEY with 3.45% of outstanding shares followed by Nygren with 1.61%, First Eagle Investment (Trades, Portfolio) with 1.14%, Joel Greenblatt (Trades, Portfolio) with 0.17%, John Buckingham (Trades, Portfolio) with 0.03%, Dalio with 0.02% and Tom Gayner (Trades, Portfolio) with 0.02%.
Apache Corp. (APA), with a market cap of $24.4 billion, has gained 43% year to date. The guru's position represents 0.03% of outstanding shares and 0.08% of his total assets.
Apache is an independent energy company that explores, develops and produces natural gas, crude oil and natural gas liquids. It has interests in six countries: the U.S., Canada, Egypt, Australia, the U.K. North Sea (North Sea) and Argentina.
It is trading with a P/B ratio of 3.42; over the last 12 months the price has risen by 43%, trading now 2.55% below its 52-week high and 99.75% above its 52-week low.
The company has a profitability and growth rating of 4 out of 10 with negative returns (ROE -183.41% and ROA -54.85%) that are underperforming 89% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 3 out of 10 with a cash to debt of 0.14 that is below the industry median of 0.45.
Dodge & Cox is the largest shareholder among the gurus with 7.67% of outstanding shares followed by Chris Davis (Trades, Portfolio) with 4.64%, Nygren with 2.01%, Charles Brandes (Trades, Portfolio) with 0.43%, Richard Pzena (Trades, Portfolio) with 0.25%, NWQ Managers (Trades, Portfolio) with 0.18%, Third Avenue Management (Trades, Portfolio) with 0.14%, Martin Whitman (Trades, Portfolio) with 0.09% and Arnold Van Den Berg (Trades, Portfolio) with 0.06%.
Anadarko Petroleum Corp. (APC), with a market cap of $32.63 billion, has gained 30% year to date. The guru's holding represents 0.03% of outstanding shares in the company and 0.1% of his total assets.
Anadarko Petroleum is engaged in the exploration and production of oil and natural gas. The company's three operating segments are: Oil and gas exploration and production, Midstream and Marketing.
It is trading with a P/B ratio of 2.86; over the last 12 months the price has dropped by 13%, trading now 13.34% below its 52-week high and 127.02% above its 52-week low.
The company has a profitability and growth rating of 4 out of 10 with negative returns; ROE of -39.33% and ROA of -10.87% are outperforming 63% of the companies in the Global Oil & Gas E&P industry. Financial strength has a rating of 4 out of 10 with a cash to debt of 0.09 that is below the industry median of 0.45.
The largest shareholder among the gurus is Dodge & Cox with 1.8% of outstanding shares followed by Andreas Halvorsen (Trades, Portfolio) with 1.53%, Nygren with 1%, Cohen with 0.47%, Louis Moore Bacon (Trades, Portfolio) with 0.15%, Pioneer Investments (Trades, Portfolio) with 0.11%, Westport Asset Management (Trades, Portfolio) with 0.04% and T Boone Pickens (Trades, Portfolio) with 0.03%.
Disclosure: I do not own any shares of any stocks mentioned in this article.
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