In this article, we will take a look at the 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates. To skip our analysis of Bruce Kovner’s profile, investment strategy, and 13F holdings, you can go directly to see the 5 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
Born in 1945, Bruce Kovner is an American billionaire hedge fund manager and philanthropist with an estimated net worth of $6.2 billion. Kovner graduated from Harvard University with a B.A. in government in 1966. In 1977, he made his first trade in soybean futures contracts for $3,000, financed by a MasterCard loan. Kovner saw the contract go to $40,000 before watching it decline to $23,000 before selling. He then went on to work for Michael Marcus as a trader at Commodities Corporation (now a division of Goldman Sachs), where he is thought to have made millions.
In 1983, Bruce Kovner founded Caxton Associates, which at its peak managed more than $14 billion in funds. Andrew Lee, who is currently the CEO and chairman of Caxton Associates, took over the management of Bruce Kovner’s fund in 2008. In 2020, the company generated big profits through wagering on bonds, gold, and commodities and generated respectable gains. According to the Financial Times, its Macro Fund saw gains of 62% in 2020 and a return of 7.5% in 2021.
As of the second quarter of 2022, Caxton Associates had $26.68 billion in assets under management. Caxton Associates invests in the materials, information technology, industrials, healthcare, finance, and consumer discretionary sectors. The hedge fund initiated 317 new positions, made additional purchases in 98 stocks, sold out of 269, and reduced holdings in 90 stocks. Given that Caxton Associates invests across asset classes, the fund’s 13F portfolio, which only reflects stocks, doesn’t have many big positions, especially when it comes to blue chips.
Given that the Fed is expected to continue to increase interest rates, stocks could fall even further if economic data doesn’t meet estimates. Nevertheless some quality blue chips could be good opportunities for long term investors given current market valuations.
Bruce Kovner of Caxton Associates LP
Our Methodology:
For our list, we took 10 stocks from Bruce Kovner’s Caxton Associates 13F portfolio at the end of Q2 2022 that we think to have the right mixture of industry leadership, strong fundamentals, and growth potential. We then ranked them from #10 to #1 based on the stake value of the Caxton Associates 13F portfolio in those stocks in the second quarter. We also provided the number of hedge funds in our database that held shares in the stock at the end of Q2 2022.
10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
10. Johnson & Johnson (NYSE:JNJ)
Stake Value in Caxton Associates LP’S 13F Portfolio: $1.04 million
Percentage of Caxton Associates LP’S 13F Portfolio: 0.10%
Number of Hedge Funds: 83
Johnson & Johnson (NYSE:JNJ) is a multinational pharmaceutical company that specializes in consumer packaged goods, pharmaceuticals, and medical devices. For Q2 2022, Bruce Kovner’s Caxton Associates added Johnson & Johnson (NYSE:JNJ) to its portfolio and had a position worth $1.04 million making it 0.10% of the portfolio.
For the second quarter, Johnson & Johnson (NYSE:JNJ) also reported $24.02 billion in revenue and an adjusted EPS of $2.59. Recently, the company guided for FY22 revenue growth of 6.5% to 7.5% and adjusted EPS of $10.65 to $10.75.
At the end of Q2 2022, 83 hedge funds in Insider Monkey’s database owned investments in Johnson & Johnson (NYSE:JNJ). These funds hold a collective value of over $6.76 billion. GQG Partners, with a position worth $1.16 billion, stood as the largest hedge fund of Johnson & Johnson (NYSE:JNJ).
Alongside Citigroup Inc. (NYSE:C), CME Group Inc. (NASDAQ:CME), and Pfizer Inc. (NYSE:PFE), Johnson & Johnson (NYSE:JNJ) is one of billionaire Bruce Kovner’s Caxton Associates’ blue chip holdings at the end of Q2 2022.
9. The Bank of New York Mellon Corporation (NYSE:BK)
Stake Value in Caxton Associates LP’S 13F Portfolio: $1.07 million
Percentage of Caxton Associates LP’S 13F Portfolio: 0.10%
Number of Hedge Funds: 38
Based in New York, The Bank of New York Mellon Corporation (NYSE:BK) offers diversified financial services and has a presence in over 35 countries globally. In terms of Q2, Bruce Kovner’s Caxton Associates decreased its position in the stock by 12% to 25,787 shares worth $1.07 million.
Given its earnings power, The Bank of New York Mellon Corporation (NYSE:BK) has a strong dividend history. The bank has consistently paid dividends for 11 years and for Q2 2022, the company declared a quarterly dividend of $0.37 per share.
Recently, Deutsche Bank analyst Brian Bedell also raised his price target on the stock to $46 from $42, citing some revised macro assumptions in his models. Bedell has a Hold rating on shares.
38 hedge funds in our database were bullish on The Bank of New York Mellon Corporation (NYSE:BK) in the second quarter. Warren Buffet’s Berkshire Hathaway is the largest stakeholder in The Bank of New York Mellon Corporation (NYSE:BK) as of Q2, with a $3.01 billion position in the company.
8. Walmart Inc. (NYSE:WMT)
Stake Value in Caxton Associates LP’S 13F Portfolio: $1.11 million
Percentage of Caxton Associates LP’S 13F Portfolio: 0.10%
Number of Hedge Funds: 67
Walmart Inc. (NYSE:WMT) is a multinational retail corporation that operates networks of supermarkets, grocery stores, and department stores. With its headquarters in Bentonville, Arkansas, the company operates more than 10,500 shops and clubs across 24 nations.
During Q2 2022, Caxton Associates LP boosted its stake in the company by 77%, purchasing additional nearly 9,165 shares. The fund’s total stake in the company amounted to roughly $1.11 million, which represented 0.1% of its 13F portfolio. As a result, Walmart Inc. (NYSE:WMT) is ranked#8 in our list of 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
Given its earnings power and past earnings per share growth, Walmart Inc. (NYSE:WMT) has raised its dividend for 49 consecutive years. As a result, it pays a quarterly dividend of $0.56 per share.
As of the end of quarter two 2022, 67 hedge funds tracked by Insider Monkey reported owning stakes in Walmart Inc. (NYSE:WMT). These stakes had a consolidated value of nearly $3.78 billion. Rajiv Jain’s GQG Partners is the largest stakeholder in Walmart Inc. (NYSE:WMT) as of Q2, with a $1.19 billion position in the company.
7. Bank of America Corporation (NYSE:BAC)
Stake Value in Caxton Associates LP’S 13F Portfolio: $1.12 million
Percentage of Caxton Associates LP’S 13F Portfolio: 0.10%
Number of Hedge Funds: 99
Bank of America Corporation (NYSE:BAC) provides diversified banking and financial products and services. During Q2 2022, Caxton Associates LP had a position worth $1.12 million that made up 0.10% of the fund’s 13F portfolio.
Given its scale, Bank of America Corporation (NYSE:BAC) is a blue chip in the banking sector that has seen its earnings increase in recent years.
ClearBridge Investments, an investment management firm, mentioned Bank of America Corporation (NYSE:BAC) in its second quarter 2022 investor letter. Here’s what the firm said:
In the second quarter we made a sizable add to our position in Bank of America (NYSE:BAC) as our bank holdings have significant leverage to rising interest rates. The Fed, unfortunately, was late to realize inflation’s magnitude, maintaining for far too long that inflationary pressures were merely transitory. This mistake caused inflation to accelerate, necessitating a larger intervention than if the Fed had moved sooner.
As of the end of Q2 2022, 99 of the hedge funds tracked by Insider Monkey owned stakes in Bank of America Corporation (NYSE:BAC). Those stakes held a collective value of over $35.90 billion. Warren Buffett’s Berkshire Hathaway held a notable stake in the company, with 1.01 billion shares worth $31.44 billion.
6. The Walt Disney Company (NYSE:DIS)
Stake Value in Caxton Associates LP’S 13F Portfolio: $1.41 million
Percentage of Caxton Associates LP’S 13F Portfolio: 0.13%
Number of Hedge Funds: 109
Walt Disney Company (NYSE:DIS) is an entertainment company that operates globally in Media and Entertainment Distribution, and Parks, Experiences, and Products segments.
As of the end of Q2 2022, Bruce Kovner’s Caxton Associates LP owned 15,017 shares worth $1.41 million of Walt Disney Company (NYSE:DIS), accounting for 0.13% of its 13F portfolio. The company is ranked#6 in our list of 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
Recently, Disney trended when Bloomberg reported that CEO Bob Chapek is weighing merging Hulu and Disney+. If that happens, Disney could become even bigger in streaming.
According to Insider Monkey’s Q2 data, 109 hedge funds held investments in the company. These investments amounted to over $3.19 billion. Among these hedge funds, Ken Griffin’s Citadel Investment Group was the most prominent stakeholder having stakes worth $618.32 million.
Like Walt Disney Company (NYSE:DIS), Citigroup Inc. (NYSE:C), CME Group Inc. (NASDAQ:CME), and Pfizer Inc. (NYSE:PFE) are blue chip holdings in billionaire Bruce Kovner’s Caxton Associates’ 13F portfolio at the end of Q2 2022.
Click to continue reading and see 5 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
Suggested Articles:
- 11 Biotech Stocks Popular On Reddit
- 10 Best Stocks to Buy According to Michael Burry
- 10 Blue Chip Stocks To Buy Now According To Billionaire Andreas Halvorsen
Disclosure. None. 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates is originally published on Insider Monkey.
