Ray Dalio (Trades, Portfolio)’s Bridgewater Associates gained 73 new holdings during the first quarter. The top three new holdings are Cliffs Natural Resources Inc. (CLF, Financial), General Electric Co. (GE, Financial) and Ensco PLC (ESV, Financial).
Dalio stepped down as co-CEO of Bridgewater in April but remains at the firm he founded over four decades ago as a co-chief investment officer and co-chairman. The world’s largest hedge fund has around $160 billion in assets under management. The current portfolio is composed of 236 stocks and is valued at $8.8 billion.
After exiting its Cliffs Natural Resources stake in fourth-quarter 2012, Dalio’s firm established a new holding of 3.8 million shares, giving it 0.36% portfolio space. The firm paid an average price of $9.50 per share.
The mining and natural resources company has a market cap of $1.8 billion; its shares were trading around $6.12 on Friday with a price-earnings (P/E) ratio of 31 and a price-sales (P/S) ratio of 0.6.
The Peter Lynch chart below shows the stock is trading about evenly with its fair value.
GuruFocus ranked the company’s financial strength 3 of 10 and its profitability and growth 5 of 10. The miner currently pays a quarterly dividend of 15 cents per share.
Jim Simons (Trades, Portfolio) is Cliffs Natural Resources’ largest guru shareholder with 3.2% of its outstanding shares. Paul Tudor Jones (Trades, Portfolio) also holds the stock.
Having previously sold out of General Electric in third-quarter 2016, the firm purchased 604,856 shares for an average price of $30.2 per share, expanding the portfolio 0.2%.
The industrial conglomerate has a market cap of $244.1 billion; its shares were trading around $28.11 on Friday with a P/E ratio of 28.9, a price-book (P/B) ratio of 3.3 and a P/S ratio of 2.1.
According to the Peter Lynch chart below, the stock is trading above its fair value.
GuruFocus ranked GE’s financial strength 5 of 10 and its profitability and growth 5 of 10. The company pays a quarterly dividend of 24 cents. The trailing dividend yield is 3.2% and the forward dividend yield is 3.3%. Over the past five years, the company has grown its dividend at a rate of 9.1% per year.
Among the gurus invested in GE, Ken Fisher (Trades, Portfolio) is the largest shareholder with 0.3% of its outstanding shares. In all, 30 gurus hold the stock.
After selling out of Ensco in fourth-quarter 2016, the firm established a new position of 1.78 million shares, paying an average price of $10.14 per share. The trade had an impact of 0.18% on the portfolio.
The U.K.-based offshore drilling contractor has a market cap of $2.3 billion; its shares were trading around $7.68 on Friday with a P/E ratio of 3.3, a P/B ratio of 0.3 and a P/S ratio of 0.9.
The Peter Lynch chart below indicates the stock is trading below its fair value.
GuruFocus ranked Ensco’s financial strength 5 of 10 and its profitability and growth 5 of 10. It pays a quarterly dividend of one cent. The trailing dividend yield and forward dividend yield are both 0.5%. The company has grown its dividend by -43.9% per year over the past five years.
Simons is Ensco’s largest shareholder among the gurus with 3.5% of its outstanding shares. In all, seven other gurus own the stock.
Other buys the firm made during the quarter include Walt Disney Co. (DIS, Financial), United Parcel Service Inc. (UPS, Financial), Biogen Inc. (BIIB, Financial), Adobe Systems Inc. (ADBE, Financial), Micron Technology Inc. (MU, Financial), Amgen Inc. (AMGN, Financial) and United States Steel Corp. (X, Financial).
Disclosure: I do not own any stocks mentioned in the article.
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