Dividend Stock Holdings Of Top Hedge Fund Managers

Not all hedge fund managers are worth paying attention to. Many of them lose money for their clients each year or under perform the market. But when a hedge fund manager has been in the business for 20+ years and continues to beat the market I try to pay attention. David Tepper is one of those types of managers. He runs the top performing hedge fund of 2012 Appaloosa Management and earned $2.2B last year.

I thought it would be fun to see what dividend stocks the top hedge fund managers are holding. Obviously these guys have a different strategy that most dividend investors and are likely to move in an out of investments to turn a profit. Very few of them would ever invest in a dividend payer and DRIP the dividends for 10-20 years.

I’ve listed the top three performing hedge fund managers from 2012. I’ve also included the top holdings of Carl Ichan and Ken Fisher just for fun.

Holding listed as of 12/31/2012. Investments may have changed since then.

David Tepper – Appaloosa Management LP

David Tepper has a long track record of success. He recently made news during an interview when he explained his bullish thesis for the market. Citi really doesn’t pay a dividend but they are expected to boost distributions soon so I’ve listed it here. Of Tepper’s top 10 holdings only 4 pay a dividend.

Apple – AAPL: 2.7% yield
Citi – C: .1% yield
Qualcomm – QCOM: 2.2% yield
Ford – F: 2.9% yield

*Update: Tepper sold 40% of his stake in Apple according to the March 13F filings.

Steven Cohen – SAC Capital Advisors

Steve Cohen is a legendary hedge fund manager that has provided incredible returns for his investors. He founded his hedge fund in 1992 and has a net worth of $8B. 5 of his top 10 holdings paying dividends and he is the only one of these hedge fund managers that has a long term dividend growth stock on his list. .

Sherwin-Williams – SHW: 1.1% yield
News Corp NWSA- .5% yield
Schlumberger – SLB: 1.6% yield
Starbux – SBUX: 1.3% yield
Noble Energy – NBL 1% yield

Ray Dalio – Bridgewater Associates

Ray Dalio founded Bridgewater Associates in 1973 and is now fulfilling a role as mentor for the fund. Most of the holdings of Bridgewater are funds and trusts but there are 3 stocks that do pay dividends in their top 10 holdings.

Microsoft – MSFT: 2.8% yield
CVS Caremark – CVS: 1.6% yield
Hewlett-Packard – HPQ: 2.5% yield

Carl Ichan – Ichan Capital

The man, the myth, the legend. He has been making a lot of waves lately as an activist investor and his track record speaks for itself. He is a big part of the reason why I am long Herbal life – because I like where I think the company will be in 5-10 years. Ichan has a net worth around $20B and now only invests his own money.

Ichan Enterprises – IEP: 4.4% yield
CVR Energy – CVI: 5.1% yield
Chesapeake Energy – CHK: 1.8% yield
American Railcar – ARII: 2.9% yield
Mentor Graphics – MENT: 1% yield

Ken Fisher – Fisher Asset Management

You’ve possible heard of Ken Fisher the author. That’s because he has written a bunch of investment and financial books. A few of them even made the NY Times bestsellers list. Fisher founded his investment firm in 1979 and has a net worth around $2B. Fisher has the most dividend-paying stocks in his top 10 holdings.

Pfizer – PFE: 3.3% yield
Visa – V: .7% yield
Johnson & Johnson – JNJ: 3.1% yield
Oracle – ORCL: .7% yield
Cisco – CSCO: 3.2% yield
HSBC Holdings – HBC: 6.4% yield
General Electric – GE: 3.3% yield


  1. I can identify with Ken Fisher’s holdings the most, most dividend payers.

    Any short-term performance data on these guys?


  2. Most of these guys seem a little light on the yield, though i guess thats understandable as they generally need to hit 20% + returns and dividend stocks can get you low to mid teens but not much more in my view. Thats more than enough to make me happy though!

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