In this article, we discuss the 5 new stock picks of billionaire Ray Dalio. If you want to read about some more stocks in the Ray Dalio portfolio, go directly to 10 New Stock Picks of Billionaire Ray Dalio.
5. Ulta Beauty, Inc. (NASDAQ:ULTA)
Number of Hedge Fund Holders: 52
Ulta Beauty, Inc. (NASDAQ:ULTA) operates as a retailer of beauty products. Regulatory filings indicate that Bridgewater Associates owned over 1,000 shares of Ulta Beauty, Inc. (NASDAQ:ULTA) at the end of June 2022 worth $439,000, representing a small portion of the portfolio.
On August 29, Barclays analyst Adrienne Yih maintained an Overweight rating on Ulta Beauty, Inc. (NASDAQ:ULTA) stock and raised the price target to $511 foim $491, appreciating the second quarter earnings beat of the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Ulta Beauty, Inc. (NASDAQ:ULTA), with 701,400 shares worth more than $270 million.
In its Q2 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Ulta Beauty, Inc. (NASDAQ:ULTA) was one of them. Here is what the fund said:
“After seeding the portfolio with select growth companies in the second half of 2020 and 2021, we have redirected our focus over the last several quarters to risk management. Moves during the second quarter in pursuit of greater stability included reducing consumer discretionary exposure with the sale of omni-channel cosmetics retailer Ulta Beauty, Inc. (NASDAQ:ULTA).
We exited Ulta as our thesis has largely played out in terms of a post-COVID 19 earnings recovery. Ulta has steadily gained share over the last several years and its partnership with Target (TGT) represents a new avenue to gain customer loyalty. That being said, we are wary about the resilience of the consumer and the impact of labor cost inflation, which could crimp Ulta’s margin expansion in coming quarters. As with recent activity, the sale further reduces our consumer discretionary exposure and helps manage portfolio risk through an ongoing period of volatility.”
4. Redfin Corporation (NASDAQ:RDFN)
Number of Hedge Fund Holders: 19
Redfin Corporation (NASDAQ:RDFN) is a residential real estate brokerage firm. According to the latest data, Bridgewater Associates owned more than 516,000 shares of Redfin Corporation (NASDAQ:RDFN) at the end of the second quarter of 2022 worth $4.2 million, representing 0.01% of the portfolio.
On August 8, Susquehanna analyst Shyam Patil maintained a Neutral rating on Redfin Corporation (NASDAQ:RDFN) stock and lowered the price target to $10.5 from $13, noting the core business of the firm had executed pretty well given the current housing macro.
At the end of the second quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $279 million in Redfin Corporation (NASDAQ:RDFN), compared to 23 the preceding quarter worth $565 million.
In its Q1 2022 investor letter, Saga Partners, an asset management firm, highlighted a few stocks and Redfin Corporation (NASDAQ:RDFN) was one of them. Here is what the fund said:
“I recently wrote about Redfin in this December 2021 write-up. I explained how Redfin has increased the productivity of real estate agents by integrating its website with its full-time salaried agents and then funneling the demand aggregated on its website to agents. Redfin agents do not have to spend time prospecting for business but can rather spend all their time servicing clients throughout the process of buying and selling a home.
Since Redfin agents are three times more productive than a traditional agent, Redfin is a low-cost provider, i.e., it costs Redfin less to close a transaction than a traditional brokerage at scale. It is a similar concept as the higher operating leverage of e-commerce relative to brick & mortar retailers. Redfin has higher operating leverage compared to the traditional real estate brokerage.” (Click here to see the full text)
3. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 65
Sea Limited (NYSE:SE) is a diversified technology company. Securities filings reveal that Bridgewater Associates owned over 459,000 shares of Sea Limited (NYSE:SE) at the end of June 2022 worth $30 million, representing 0.13% of the portfolio.
On August 18, Barclays analyst Jiong Shao maintained an Overweight rating on Sea Limited (NYSE:SE) stock and lowered the price target to $114 from $125, noting that many macro factors had become more uncertain in recent months for the firm.
At the end of the second quarter of 2022, 65 hedge funds in the database of Insider Monkey held stakes worth $2.6 billion in Sea Limited (NYSE:SE), compared to 77 in the previous quarter worth $5 billion.
In its Q1 2022 investor letter, Farrer Wealth Advisors, an asset management firm, highlighted a few stocks and Sea Limited (NYSE:SE) was one of them. Here is what the fund said:
“Sea Limited (NYSE:SE) had been selling off since its peak in early November of ~$363/share. This was driven by both a general sell off in tech, especially non-profitable tech, and a general belief that its gaming arm (Garena) was experiencing a slowdown due to its flagship game Free Fire. Free Fire has experienced a slowdown for three reasons: it is a victim of its own success, and by the end of Q321, nearly 10% of the world’s population already played the game, and thus reaching new users was difficult; A return to normal with people traveling/going out more and spending less time playing games; and the Indian market imposed a ban on the game due to anti-Chinese sentiment (Tencent is a large shareholder in Sea Limited (NYSE:SE)). We believed that these issues, while worth considering, were a bit overblown, and some of the data we saw from 3rd party sources showed that though Free Fire usage was dipping, it wasn’t too drastic. Thus, we marginally added to the position throughout the quarter. This was a mistake. During Sea’s earnings report in early March, the company guidance for Garena (down nearly 35% yoy) showed that the slowdown was far worse than predicted. Secondly, Shopee (Sea’s ecommerce arm) has pulled out of certain markets (in Europe and India), which long-term is probably the right strategy, but short-term hampers the optionality of the business. After considering this information and the guidance from earnings, we decided to significantly trim the position. In our opinion, management does have a bit of egg on its face from an overly aggressive expansion or as one investor called it, “bull market hubris.” We think management’s moves were mostly logical, it’s just that their failures came during an unforgiving market. While we believe that Sea’s future is still bright (especially with regards to their e-commerce and financial services), it will take a few quarters of strong earnings for them to regain their momentum, and for now the capital can be better spent elsewhere.”
2. BioNTech SE (NASDAQ:BNTX)
Number of Hedge Fund Holders: 26
BioNTech SE (NASDAQ:BNTX) is a biotech firm based in Germany. Latest filings show that Bridgewater Associates owned over 12,000 shares of BioNTech SE (NASDAQ:BNTX) at the end of the second quarter of 2022 worth $1.8 million.
On August 17, Cowen analyst Yaron Werber initiated coverage of BioNTech SE (NASDAQ:BNTX) stock with a Market Perform rating and a price target of $177, noting that the deep oncology pipeline of the firm was innovative but required validation.
At the end of the second quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $380 million in BioNTech SE (NASDAQ:BNTX), compared to 29 the preceding quarter worth $409 million.
In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and BioNTech SE (NASDAQ:BNTX) was one of them. Here is what the fund said:
“BioNTech SE (NASDAQ:BNTX) is a leader in the emerging field of mRNA drugs, with additional programs in engineered cell therapies, antibodies, and immunomodulators. Shares performed well for the quarter. The COVID-19 vaccine rollout continues with the addition of a booster shot, and we believe the pandemic has been a strong proof point of the speed and efficacy of the mRNA platform. Beyond vaccines, we think BioNTech SE (NASDAQ:BNTX) has potential to disrupt the biopharmaceutical space with a pipeline spanning oncology, infectious diseases, and rare diseases.”
1. Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 38
Sabre Corporation (NASDAQ:SABR) provides technology solutions for the travel industry. Latest data shows that Bridgewater Associates owned over 22,000 shares of Sabre Corporation (NASDAQ:SABR) at the end of the second quarter of 2022 worth $130,000, representing a small portion of the portfolio.
On August 22, Mizuho analyst Matthew Broome maintained a Neutral rating on Sabre Corporation (NASDAQ:SABR) stock and raised the price target to $8 from $7, noting the firm continued to see positive trends across the global travel recovery.
At the end of the second quarter of 2022, 38 hedge funds in the database of Insider Monkey held stakes worth $434 million in Sabre Corporation (NASDAQ:SABR), the same as in the preceding quarter worth $845 million.
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