In this article, we discuss the 10 best stocks to buy under $30 according to Bruce Kovner’s Caxton Associates. If you want to skip our detailed analysis of Kovner’s history, investment philosophy, and hedge fund performance, go directly to 5 Best Stocks to Buy Under $30 According to Bruce Kovner’s Caxton Associates.
Bruce Stanley Kovner is a notable American investor, best known for founding Caxton Associates in 1983 in New York City. Kovner graduated from Harvard University with a degree in political economy, and soon after that, he discovered commodities trading. Before starting his own hedge fund, Kovner joined Commodities Corporation as a trader under the tutelage of Michael Marcus in 1977, where he received remarkable returns and made millions of dollars. After his retirement in 2011 from Caxton Associates, he established CAM Capital in 2012 to manage his personal and business investments.
Kovner has a personal net worth of $6.2 billion, and apart from managing his impressive investment portfolio, he is also the Chairman of the Board of the Juilliard School, Vice Chairman of Lincoln Center for the Performing Arts. In addition to that, he also serves on the board of the American Enterprise Institute and the Metropolitan Opera.
The largest holding in Caxton Associates’ portfolio is Ishares Trust (NASDAQ:IEF), with the hedge fund owning more than 375,000 shares worth over $86 million, and it makes up 9.43% of Caxton Associates’ 13F portfolio. Ishares Trust (NASDAQ:IEF) is a collection of ETFs managed by BlackRock, listed on several stock exchanges and significant sustainable fund flows. It is also the largest global issuer of ETFs, outperforming several other funds and doing exceptionally well during market downturns, which categorizes it as a great investment.
Bruce Kovner of Caxton Associates LP
Why should we pay attention to Kovner’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
With this context in mind, here are the 10 best stocks under $30 according to Bruce Kovner’s Caxton Associates. We used Caxton Associates’ 13F portfolio for the second quarter of 2021 to rank these stocks. The list was compiled according to the value of each holding in the investment portfolio.
Best Stocks Under $30 According to Bruce Kovner’s Caxton Associates
10. Dril-Quip, Inc. (NYSE:DRQ)
Caxton Associates’ Stake Value: $924,000
Stock Price as of October 4: $26.03
Number of Hedge Fund Holders: 9
Dril-Quip, Inc. (NYSE:DRQ) is the 10th stock on our list of the 10 best stocks to buy under $30 according to Bruce Kovner’s Caxton Associates. Dril-Quip, Inc. (NYSE:DRQ) is a leading manufacturer of drilling equipment for deepwater applications and provides a complete range of tools for offshore field development. The company is headquartered in Houston, Texas, and has manufacturing plants in the United States, Brazil, Scotland, and Singapore. Dril-Quip, Inc. (NYSE:DRQ) has sales and service centers across the world at several locations.
At the end of the second quarter of 2021, 9 hedge funds in Insider Monkey’s database held stakes amounting to $46.2 million in Dril-Quip, Inc. (NYSE:DRQ), down from 10 in the previous quarter with stakes worth over $66.6 million.
Out of the hedge funds being tracked by Insider Monkey, Washington-based Fisher Asset Management is a leading shareholder in Dril-Quip, Inc. (NYSE:DRQ) with 665,171 shares worth more than $22.5 million.
Heartland Advisors, in its Q2 2021 investor letter, mentioned that Dril-Quip, Inc. (NYSE:DRQ)’s sales were weaker than the forecasts, yet their strong margin growth remained a positive indication about the company’s future. Here is what they said:
“Oil prices remained firm during the period, and Energy stocks benefited. Stock selection in the group boosted absolute portfolio returns. Holdings in the Equipment and Services space were particularly strong, including Dril-Quip Inc. (DRQ), which specializes in serving the offshore/subsea markets.
Dril-Quip’s sales were slightly weaker than forecasted for the most recent period, but the company reported strong margin growth as efforts undertaken to boost bottom-line results began to pay off. Additionally, bookings for future projects were up, and we expect expenses will continue to improve as management’s plan for reducing inventory levels continues to progress.
Despite the promising outlook, Dril-Quip trades at less than 8x estimated 2022 earnings before interest, taxes, depreciation, and amortization.”
9. Ford Motor Company (NYSE:F)
Caxton Associates’ Stake Value: $966,000
Stock Price as of October 4: $14.35
Number of Hedge Fund Holders: 55
The ninth stock on our list of the 10 best stocks to buy under $30 according to Bruce Kovner’s Caxton Associates is Ford Motor Company (NYSE:F), which is a Michigan-based American multinational automobile manufacturer that sells commercial and luxury vehicles.
Caxton Associates owns 65,000 shares in Ford Motor Company (NYSE:F) that amount to $966,000. At the end of the second quarter of 2021, 55 hedge funds in Insider Monkey’s database held stakes totaling up to $2.10 billion, down from 49 in the previous quarter with stakes worth more than $2.19 billion.
On September 10, Wells Fargo maintained an Overweight rating on Ford Motor Company (NYSE:F), raising the price target to $16.03.
Out of the hedge funds tracked by Insider Monkey, New York-based D E Shaw is the leading shareholder in Ford Motor Company (NYSE:F), with 45.36 million shares worth over $674.1 million.
8. Apartment Investment and Management Company (NYSE:AIV)
Caxton Associates’ Stake Value: $981,000
Stock Price as of October 4: $7.25
Number of Hedge Fund Holders: 15
The eighth stock on our list of the 10 best stocks to buy under $30 according to Bruce Kovner’s Caxton Associates is Apartment Investment and Management Company (NYSE:AIV), which is a real estate investment trust that specializes in property development and redevelopment among other investment avenues, focusing on the US multifamily segment. Apartment Investment and Management Company (NYSE:AIV) is traded as a Russell 1000 Component.
Caxton Associates owns 146,209 shares in Apartment Investment and Management Company (NYSE:AIV), amounting to $981,000.
7. Plug Power Inc. (NASDAQ:PLUG)
Caxton Associates’ Stake Value: $1,005,000
Stock Price as of October 4: $24.32
Number of Hedge Fund Holders: 34
Plug Power Inc. (NASDAQ:PLUG) is the seventh stock on our list of the 10 best stocks to buy under $30 according to Bruce Kovner’s Caxton Associates. Plug Power Inc. (NASDAQ:PLUG) is an American company that provides hydrogen fuel cell systems which essentially replace traditional batteries in machines and vehicles that run on electricity. The company has production facilities in Spokane, Rochester, Washington, and New York.
Caxton Associates owns 29,393 shares in Plug Power Inc. (NASDAQ:PLUG), amounting to $1 million. At the end of the second quarter of 2021, 34 hedge funds in Insider Monkey’s database held stakes in Plug Power Inc. (NASDAQ:PLUG), with Citadel Investment Group being the biggest stakeholder in the company, with 74.89 million shares, worth $509.7 million.
BMO Capital analyst Ameet Thakkar initiated coverage on Plug Power Inc. (NASDAQ:PLUG) with a Market Perform rating on October 1. The price target was raised to $30.
6. Navient Corporation (NASDAQ:NAVI)
Caxton Associates’ Stake Value: $1,012,000
Stock Price as of October 4: $18.88
Number of Hedge Fund Holders: 17
Navient Corporation (NASDAQ:NAVI) is one of the best stocks under $30 to buy according to Bruce Kovner’s Caxton Associates. The company manages student loans in the United States, and it is responsible for $300 billion in student loans for over over 12 million debtors. Navient Corporation (NASDAQ:NAVI) was formed when Sallie Mae was split into Sallie Mae Bank and Navient.
On September 29, reports suggested that Navient Corporation (NASDAQ:NAVI) signed a contract with Maximus, Inc. (NYSE:MMS), where the student loan amount owed by the US Department of Education would be transferred from Navient to Maximus. The contract will be finalized in the start of October, depending on the approval from Federal Student Aid.
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Disclosure: None. 10 Best Stocks to Buy Under $30 According to Bruce Kovner’s Caxton Associates is originally published on Insider Monkey.
