Ray Dalio (Trades, Portfolio) founded Greenwich, Connecticut-based hedge fund Bridgewater Associates in 1975. As of the second quarter, it had more than $165 billion under management. Throughout its 40-year history, Bridgewater has been recognized as a top-performing manager and an industry innovator. Bridgewater was one of the few firms to have positive performance during the 2008 financial crisis. Dalio's second-quarter portfolio was composed of 308 stocks with a total value of $10.83 billion, and the below listed trades were the most weighted buys during the quarter.
Dalio increased by 310% his stake in Chipotle Mexican Grill Inc. (CMG) with an impact of 0.12% on his portfolio.
Chipotle operates Chipotle Mexican Grill restaurants, which serve a menu of burritos, tacos, burrito bowls and salads, made using fresh ingredients. It operates 1,572 Chipotle restaurants throughout the U.S., as well as seven in Canada, six in England, two in France, and one in Germany.
Compared to second quarter 2014, revenue increased 14.1% in the last second quarter and net income increased 27.1%. For the first half of the year, revenue increased 17.0% and net income by 36.0%. While the company opened 48 new restaurants in the last quarter and 97 new restaurants in the first half of year, it expects 2015 new restaurant openings at or above the high end of the previously announced range of 190 to 205.
The stock is trading with a P/E ratio of 44.56, and has been as high as $758 and as low as $597.33 in the last 52 weeks. It is currently 4.17% below its 52-week high and 21.7% above its 52-week low. According to the DCF calculator, the company looks overpriced by 56%.
Chipotle has very healthy profitability, growth rates and financial strength. Returns and margins are hitting the best performance in recent company history and they are outperforming 84% of its competitors. ROE is 25.63% and ROA is 20.16%, while operating margin is 18.48% and net-margin 11.59%. It has a three-year EPS growth rate of 27.9%, a thre-year EBITDA growth rate of 24.6% and a revenue growth rate of 22.2%; the company is even out of debt according to both the cash-to-debt ratio and the interest coverage ratio.
Frank Sands (Trades, Portfolio) is the main guru shareholder of the company with 5.8% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.01% and Pioneer Investment with 0.1%.
Dalio bought 189,313 shares in Foot Locker Inc. (FL) with an impact of 0.12% on his portfolio.
The company is a retailer of athletically inspired shoes and apparel, operating 3,423 mainly mall-based stores in the U.S., Canada, Europe, Australia and New Zealand. It operates in two reportable segments namely Athletic Stores and Direct-to-Customers.
The company reported a second quarter 29% increase for net income and 33% increase for EPS compared to the same quarter last year. During the last quarter the company spent approximately $76 million to repurchase 1.2 million shares during the quarter and paid its quarterly stock dividend of 25 cents, spending $35 million.
The stock is trading with a P/E ratio of 18.45, and has been as high as $74.95 and as low as $51.12 in the last 52 weeks. It is currently 2.15% below its 52-week high and 42.94% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 25%.
Foot Locker has strong profitability, growth rate and financial strength. Returns and margins are hitting their best performance in recent company history, and they are outperforming 80% of its competitors. ROE is 22.20% and ROA is 15.61% while operating margin is 12.19% and net-margin 7.85%. Its EPS grew by 25.5% over the latest three years, EBITDA by 21.90% and revenue by 10.40%; financially speaking the company has a very remarkable cash-to-debt ratio of 7.35.
Joel Greenblatt (Trades, Portfolio) is the main guru shareholder of the company with 0.42% of outstanding shares, followed by FPA Capital Fund (Trades, Portfolio) with 0.32% and Ray Dalio (Trades, Portfolio) who holds 0.14% of outstanding shares.
Dalio bought 183,440 shares of Fossil Group Inc. (FOSL) with an impact of 0.12% on his portfolio.
The company designs, markets and distributes consumer fashion accessories. Its principal offerings include an extensive line of men's and women's fashion watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories and clothing.
In the second quarter of fiscal 2015, driven by the negative impact of changes in foreign currency, it reported a worldwide net sales decrease of 4% and on a constant currency basis, second quarter net sales increased 2% from the same quarter last year. The translation impact from the strengthening of the U.S. dollar negatively impacted net sales and reduced diluted EPS by 30 cents.
The stock is trading with a P/E ratio of 8.59, and has been as high as $115.20 and as low as $56.01 in the last 52 weeks. It is currently 49.18% below its 52-week high and 4.52% above its 52-week low. According to the DCF calculator, the company currently looks undervalued by 70%.
The main hedge fund guru holder of the company is Columbia Wanger (Trades, Portfolio) with 2.66% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 1.84% and Joel Greenblatt (Trades, Portfolio) with 1.82%.
Dalio increased by 114.65% his stake in Suncor Energy Inc. (SU) with an impact of 0.12% on his portfolio.
Suncor is an integrated energy company focused on developing petroleum resource basins — Canada's Athabasca oil sands. The company explores for, acquires, develops, produces and markets crude oil and natural gas in Canada and internationally; it transports and refines crude oil and it markets petroleum and petrochemical products in Canada. It also markets third-party petroleum products.
During the last quarter the company generated cash flows more than strong enough to fund capital requirements and its dividend. It reported operating EPS of 62 cents, which is above the expected 33 cents.
The stock is trading with a P/E ratio of 36.93, and has been as high as $37.77 and as low as $24.20 in the last 52 weeks. It is currently 31.08% below its 52-week high and 7.56% above its 52-week low and according to the DCF calculator, the company looks overpriced by 239%.
Suncor has almost nulls returns, ROE of 3.34% and ROA of 1.74%; only operating margin has a good ratio of 13.43%, but all the other indicators were having the worst performance in the company’s recent history in the second quarter.
Warren Buffet is the main guru shareholder of the company with 1.55% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.46% and NWQ Managers (Trades, Portfolio) with 0.2% of outstanding shares.
Dalio increased by 124.26% his stake in CenturyLink Inc. (CTL) with an impact of 0.11% on his portfolio.
CenturyLink is an integrated communications company engaged primarily in providing an array of communications services to its residential, business, governmental and wholesale customers.
Second quarter 2015 adjusted diluted EPS was 55 cents compared to 72 cents in the year-ago period due to lower operating cash flow. CTL expects it in the range of $0.53 to $0.58 in the third quarter. Operating revenues for second quarter 2015 were $4.42 billion compared to $4.54 billion in second quarter 2014.
The stock is trading with a P/E ratio of 20.13, and has been as high as $41.99 and as low as $24.81 in the last 52 weeks. It is currently 39.56% below its 52-week high and 2.3% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 37%.
Brian Rogers (Trades, Portfolio) is the main guru shareholder of the company with 0.79% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.17% and Ray Dalio (Trades, Portfolio) with 0.12%.
