Jim Cramer And Ray Dalio Love These Stocks

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Includes: AA, ABT, APA, AVGO, AXP, DD, DE, ESRX, ETN, FCX, JNPR, MAR, ORCL, PRU
by: Insider Monkey

Jim Cramer is a former hedge fund manager, a best-selling author, the host of CNBC's Mad Money, and a co-founder and chairman of TheStreet.com Inc. Nearly two hundred fifty thousand people watch his show daily on TV and most of these are ordinary investors who are trying to understand what is going on in the market. Jim Cramer’s bullish and bearish stock picks on his show are a starting point for many investments made by these folks. Ray Dalio, founder of Bridgewater Associates, is also a widely followed money manager. He founded Bridgewater Associates in a two-bedroom apartment in 1975. Today, Bridgewater is one of the largest and best-performing hedge funds in the world. It manages more than $100 billion in global investments and has nearly 1200 employees researching the market and doing analysis that informs bets on macroeconomic trends. Bridgewater returned 44.8% in 2010 and generated a return of around 25% through the end of November.

Below we compiled a list of stocks both Cramer and Dalio are bullish about. All stocks are in Cramer’s charitable trust as of January 5, 2012 and in Dalio’s portfolio at the end of September 2011. The “Dalio” column indicates the value of the position in thousands, and the “Cramer” column indicates the number of shares of the stock the trust owns.

Company Name

Ticker

Dalio

Cramer

ORACLE CORP

ORCL

25136

3100

FREEPORT MCMORAN

FCX

19476

800

ALCOA INC

AA

17788

5700

DUPONT

DD

16492

500

AMERICAN EXPRESS CO

AXP

15394

1600

STARWOOD HOTELS

HOT

11170

1800

ABBOTT LABORATORIES

ABT

9057

400

PRUDENTIAL FINANCIAL

PRU

7629

2100

EXPRESS SCRIPTS INC

ESRX

7488

1300

BROADCOM CORP

BRCM

6296

500

EATON CORP

ETN

5227

300

JUNIPER NETWORKS

JNPR

3271

2500

APACHE CORP

APA

2760

800

DEERE & CO

DE

440

800

Click to enlarge

Oracle Corp (NASDAQ:ORCL) is the largest position of Dalio’s portfolio among the stocks listed above. As of September 30, Dalio’s Bridgewater reported owning $25.1 million of ORCL stocks, up 65% from the end of June. Cramer’s charitable trust also owns 3100 shares of ORCL, which is worth about $83700. Though ORCL lost 7.29% since the end of September, it has a P/E ratio of 14.61, which is relatively low compared to its peers. Besides Bridgewater, there are 52 other hedge funds with ORCL positions in their portfolios at the end of the third quarter. For example, Ken Fisher’s Fisher Asset Management had $588 million invested in ORCL.

During the third quarter, Dalio significantly boosted his stake in Freeport McMoRan Copper & Gold (NYSE:FCX). He nearly tripled his position. At the end of September, Bridgewater disclosed to own $19.5 million worth of FCX shares. Cramer’s charitable trust also has 800 shares of FCX as of January 5, 2012. FCX returned 29.96% since the end of the third quarter, beating the 13.87% for SPY by more than 16 percentage points. FCX has a market cap of $37.25B and a P/E ratio of 6.87. There are 42 hedge funds reported to own FCX in their 13F portfolios at the end of the third quarter. For instance, Jim Simons’ Renaissance Technologies initiated a brand new $68 million position in FCX during the third quarter.

Other large-cap stocks that both Cramer and Dalio are bullish about include Abbott Laboratories (NYSE:ABT), American Express Company (NYSE:AXP), E. I. du Pont de Nemours and Company (NYSE:DD), Apache Corp (NYSE:APA), Deere & Company (NYSE:DE), Prudential Financial Inc (NYSE:PRU), Express Scripts Inc (NASDAQ:ESRX), Broadcom Corp (BRCM), Eaton Corporation (NYSE:ETN), Juniper Networks, Inc (NYSE:JNPR), Alcoa, Inc (NYSE:AA), and Starwood Hotels & Resorts Worldwide Inc (HOT). We like Cramer and Dalio. Our past studies have shown that by imitating the stock picks of the best money managers such as Cramer and Dalio, investors are more likely to outperform the market in the long term. We encourage investors to focus on the stocks that Cramer and Dalio love and do some in-depth research on these stocks for their own portfolio.



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.