In this piece, we will take a look at the ten industrial stocks to invest in according to Ray Dalio’s Bridgewater Associates. If you want to jump ahead to the top five stocks in this list, then head on over to 5 Industrial Stocks to Invest In According to Ray Dalio’s Bridgewater Associates.
Bridgewater Associates is a hedge fund based out of Westport, Connecticut, United States. It is led by Mr. Ray Dalio, a hedge fund billionaire who is the fund’s chairman and co chief investment officer.
Mr. Dalio created Bridgewater Associates in 1975, and since then the fund has seen its portfolio grow to be worth billions of U.S. dollars. The executive’s exposure to the financial world came at the tender age of 12, when he worked at a golf course that was frequented by investment professionals. This led to him starting out in the investment industry at the same age, after he took up a trading job at an investment firm and developed a portfolio before reaching high school.
Mr. Dalio would graduate from high school and go on to attend the Long Island University for his bachelor’s degree in finance. Following this, he would attend the illustrious Harvard Business School and receive his Master’s in Business Administration (MBA) from there in 1973. During his time at college, he started trading in commodities as opposed to stocks, due to easier regulatory hurdles for the former.
He set up the first Bridgewater Associates during his time at Harvard but abandoned the project due to a lack of fruition. However, a year later Mr. Dalio would try his hand in the financial world once again, and the rest is history.
Bridgewater Associates is one of the largest hedge funds in the world and it had a portfolio that was worth $17 billion by the end of last year’s fourth quarter. Its founder is also one of the richest people in the world, whose net worth stood at a whopping $22 billion as of March 2022 according to Forbes Magazine.
Mr. Dalio’s investment firm offers three products to its customers. These are its Pure Alpha Fund, the All Weather Fund, and the Pure Alpha Major Markets fund. As their names suggest, some of these focus exclusively on high returns and markets, while the rest focus on portfolio stability. The investment fee for the All Weather fund stands at $500,000 while it runs into the millions of dollars for the other two.
In today’s piece, we will focus on Bridgewater Associates’ investments in the industrial sector. This includes a variety of companies that generally deal with other corporations and large scale manufacturing operations. The top three Bridgewater holdings in this sector are in The Sherwin-Williams Company (NYSE:SHW), PPG Industries, Inc. (NYSE:PPG), and Trane Technologies plc (NYSE:TT).
Some of the biggest stakes of the hedge fund are in PepsiCo, Inc. (NADAQ:PEP), The Coca-Cola Company (NYSE:KO), and Walmart Inc. (NYSE:WMT).
Our Methodology
In order to pick Bridgewater Associates’ top industrial stocks, we analyzed the firm’s filings with the Securities and Exchange Commission for the fourth quarter of last year. After the firms were identified, they were evaluated through their quarterly earnings, analyst reports, investor letters, large shareholdings, and hedge fund sentiment garnered through Insider Monkey’s survey of 924 funds for Q4 2021.
Industrial Stocks to Invest In According to Ray Dalio’s Bridgewater Associates
10. Mohawk Industries, Inc. (NYSE:MHK)
Bridgewater Associates’ Stake Value: $11.8 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 38
Mohawk Industries, Inc. (NYSE:MHK) is an American company that deals with the construction sector. It provides products to the construction industry which are used in residential and other buildings. These include flooring products.
Bridgewater Associates owned 65,006 Mohawk Industries, Inc. (NYSE:MHK) shares as Q4 2021 came to an end. These were worth $11.8 million and constituted 0.06% of its portfolio. During the same time period, 38 of 924 hedge funds polled by Insider Monkey owned a stake in the flooring firm.
Mohawk Industries, Inc. (NYSE:MHK) earned $2.76 billion in revenue and $2.95 in non-GAAP EPS by the end of its fiscal fourth quarter, beating analyst estimates for both. Baird lowered the company’s price target to $188 from $200 in February 2022, stating that it is evaluating the company’s balance sheets for a potential upside.
Mohawk Industries, Inc. (NYSE:MHK)’s largest investor is Richard S. Pzena’s Pzena Investment Management which owns 1.59 million shares worth $291 million.
In addition to The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NADAQ:PEP), and Walmart Inc. (NYSE:WMT), Mohawk Industries, Inc. (NYSE:MHK) is a notable stock in Dalio’s portfolio.
9. Carlisle Companies Incorporated (NYSE:CSL)
Bridgewater Associates’ Stake Value: $12.3 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 22
Carlisle Companies Incorporated (NYSE:CSL) is an engineered products manufacturer headquartered in the United States. Its products cover the construction industry and products that are used by manufacturers for the production of items such as automobiles.
As its fiscal fourth quarter came to an end, Carlisle Companies Incorporated (NYSE:CSL) reported $1.4 billion in revenue and $2.92 in non-GAAP EPS, for a strong set of results that saw it beat analyst estimates for both. BMO Capital raised its share price target to $290 from $260 in February 2022, as it outlined that a recovery in the construction materials segment should bode well for the company’s share price.
Mr. Dalio’s investment firm owned 49,585 Carlisle Companies Incorporated (NYSE:CSL) shares by the close of 2021’s final quarter. These were a new addition to the firm’s multi-billion dollar investment portfolio, and they were worth $12.3 million. Insider Monkey’s poll of 924 hedge funds for the same quarter showed that 22 had invested in the company.
Carlisle Companies Incorporated (NYSE:CSL)’s largest investor is David Blood and Al Gore’s Generation Investment Management which owns 1.6 million shares worth $403 million.
8. Celanese Corporation (NYSE:CE)
Bridgewater Associates’ Stake Value: $18 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.1%
Number of Hedge Fund Holders: 36
Celanese Corporation (NYSE:CE) is a chemical company that provides bulk products to industrial users. These products include vinyl acetate, acetic acid, and acesulfame potassium. These are sold to a variety of industries such as food and beverages, automotive, agriculture, and pharmaceutical sectors.
Celanese Corporation (NYSE:CE) raked in $2.28 billion in revenue and $4.91 in non-GAAP EPS for its fiscal Q4 in a mixed bag of results that saw it beat analyst revenue estimates only. Piper Sandler reduced the company’s share price target to $140 from $180 in February 2022 due to potential risks to the company from DuPont divesting its materials segment to Celanese Corporation (NYSE:CE).
Bridgewater Associates had an $18 million stake in Celanese Corporation (NYSE:CE) as Q4 2021 came to an end. This was through the firm owning 107,112 shares and it represented 0.1% of its portfolio. An Insider Monkey survey of 924 hedge funds in the same time period outlined that 36 had owned the company’s shares.
Celanese Corporation (NYSE:CE)’s largest investor is Brandon Haley’s Holocene Advisors. It owns 1.6 million shares worth $278 million.
7. Genuine Parts Company (NYSE:GPC)
Bridgewater Associates’ Stake Value: $19 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.11%
Number of Hedge Fund Holders: 29
Genuine Parts Company (NYSE:GPC) is a replacement parts provider that targets the automotive and industrial sectors. Its industrial division ships several components to power generation firms, food and beverage companies, oil and gas firms, and pharmaceutical companies. These components include bearings, power transmission products, pneumatic components and safety supplies.
Mr. Dalio’s Bridgewater Associates held 136,832 Genuine Parts Company (NYSE:GPC) shares during the fourth quarter of last year. These were worth $19 million and they represented 0.1% of the firm’s investment portfolio. Insider Monkey’s Q4 2021 analysis of 924 hedge fund holdings revealed that 29 had held a stake in the firm.
As its fiscal Q4 came to an end, Genuine Parts Company (NYSE:GPC) had reported $4.8 billion in revenue and $1.79 in non-GAAP EPS, for a strong set of results that managed to beat Wall Street analyst estimates for both. Truist set a $142 price target for the company in January 2022. It justified the decision by claiming that while there is strong potential to be exploited in both the automotive and industrial sectors, the firm’s shaky growth rates leave room for concern.
Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is Genuine Parts Company (NYSE:GPC)’s largest investor. It owns 844,246 shares that are worth $118 million.
6. Pool Corporation (NASDAQ:POOL)
Bridgewater Associates’ Stake Value: $21.9 million
Percentage of Bridgewater Associates’ 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 38
Pool Corporation (NASDAQ:POOL) is primarily a swimming pool equipment provider that also serves the agriculture and construction industries. Some of its products for these industries include electrical components, tiles, hardscapes, safety equipment, and commercial pumps and filters.
Pool Corporation (NASDAQ:POOL) earned $1 billion in revenue and $2.65 in GAAP EPS for its fiscal fourth quarter, pleasing Wall Street by beating analyst estimates for both. Baird raised its price target to $600 from $555 in February 2022, as it highlighted that a recovering economy can help the company grow.
Bridgewater Associates owned a $21.9 million stake in Pool Corporation (NASDAQ:POOL) during last year’s final quarter. This came through 38,793 shares and it represented 0.12% of its investment portfolio. Insider Monkey scanned 924 hedge funds portfolios for the fourth quarter of 2021 and found out that 38 had also invested in the firm.
Pool Corporation (NASDAQ:POOL)’s largest shareholder is Robert Joseph Caruso’s Select Equity Group which owns 842,687 shares worth $476 million.
Carillon Tower Advisers mentioned Pool Corporation (NASDAQ:POOL) in its Q4 2021 investor letter. Here is what the fund said:
“Pool is the world’s largest wholesale distributor of swimming pool supplies, equipment, and related leisure products. The stock continues to be an impressive performer, as the company reported yet another quarterly update that exceeded investor expectations. The current strong housing market and positive migration trends toward the Sunbelt have resulted in healthy underlying fundamentals for the pool industry. Additionally, consumers have shown a clear desire to invest in their outdoor living and entertainment spaces, resulting in robust demand for the firm’s products.”
Along with PepsiCo, Inc. (NADAQ:PEP), The Coca-Cola Company (NYSE:KO), and Walmart Inc. (NYSE:WMT), Pool Corporation (NASDAQ:POOL) is a top Ray Dalio stock pick.
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Disclosure: None. 10 Industrial Stocks to Invest In According to Ray Dalio’s Bridgewater Associates is originally published on Insider Monkey.
