Bridgewater Associates, the largest hedge fund in the world, has Ray Dalio as a co-chief investment officer. As a result of his efforts, the company has maintained its success over the years through a culture of openness and self-reflection. Since that time in 1985, the billionaire has held the position. Since 1991, the Pure Alpha fund from Bridgewater Associates has returned an average of 10.5%. According to LCH Investments, Dalio is the most successful hedge fund manager of all time. End-2020, the fund had accumulated $46.5 billion in net profits. Large-cap stocks like PepsiCo, Alibaba Group Holding Limited and McDonald’s Corporation dominate Ray Dalio’s massive $17.2 billion 13F portfolio. Dalio’s favorite small-cap stocks include clothing, food, and education companies.
Insider Monkey highlights the list of billionaire Ray Dalio’s top 10 small-cap stock picks. Shares in Freshpet Inc. were owned by Bridgewater Associates as of December 31. Ray Dalio’s 13F portfolio includes a tenth-largest stake in a pet food company. Between January 2018 and April 2021, Freshpet shares surged 900 percent but have since fallen by half. While dealing with issues in its own supply chain, the Hain Celestial Group, Inc. has also recently been forced to lower some of its previous guidance. During the fourth quarter, Dalio increased his holdings in a provider of organic food and personal care products by 12 percent. In addition to Herbalife Nutrition Ltd., Ray Dalio has a fondness for this health-oriented small-cap firm. During the three months ending December 31, he owned 203,508 shares, an increase of 17 percent. Small-cap stocks like HFL are highly sought after by hedge funds. At the end of December, 31 hedge funds were long New Oriental Education & Technology Group Inc., with Raymond James Dalio’s Bridgewater Associates being one of them, holding 4.17 million shares. During the past year, the company’s stock price has fallen by 93 percent. I-Mab is now owned by billionaire Ray Dalio’s hedge fund, up 27% from a quarter earlier. IMAB saw a five-fold increase in hedge fund ownership in the second half of 2020, as the company’s pipeline began to show promising results. For more details, click Billionaire Ray Dalio’s Top 10 Small-Cap Stock Picks.
