In this piece, we will take a look at the ten stocks under $30 to invest in according to Caxton Associates. If you want to skip the details about the hedge fund and its founder and want to jump ahead to the top five stocks in this list, then take a look at the 5 Stocks Under $30 to Invest in According to Bruce Kovner’s Caxton Associates.
Caxton Associates is a British hedge fund based out of Berkeley Square, London, United Kingdom. It was founded by Mr. Bruce Kovner in 1983 in New York City, New York, United States. The firm has a global presence and is one of the largest of its kind in the world.
Prior to setting up Caxton, Mr. Kovner made his foray into the investment world by trading commodities. He is a Jewish-American and was born in New York City in 1946. As is the case with some of his peers in the industry, the hedge fund executive also attended the illustrious Harvard University. Mr. Caxton enrolled at Harvard in 1962 for his bachelor’s degree in Government and spent eight years at the university, where he focused on studying political science and aimed at getting a doctorate degree. However, the latter goal did not materialize, and it would be seven years after he left Harvard in 1970 that he would decide to enter the financial world.
His very first trade, involving soybean futures, saw Mr. Caxton grow a $3,000 investment to a whopping $40,000 before watching it drop to $23,000. Gradually the executive would extend his roots in the finance industry and go on to work for several firms. His time at one firm would see him reap millions of dollars in profit and pave the way to set up Caxton Associates in 1983.
The hedge fund has several investment vehicles and rarely accepts new clients after having closed its doors to new entrants in 1992. Since then, Caxton has selectively decided when to allow new investors under its fold. The decision to limit new investors has been limited by the fund’s large size as well, with worries that a large portfolio also increases the risk of large losses. Since its inception, the firm’s peak portfolio value has stood at a whopping $14 billion.
Additionally, it also came into prominence during the immediate aftermath of the coronavirus pandemic, when its flagship fund had outstanding returns of 40% — making it one of the best performing funds out there at a time when major stock market indices bled as much as 30% of their value. Owing to the fund’s striking success, Caxton decided to stop accepting new investments in it. Caxton has a global presence, with offices in the United States, United Kingdom, and Australia.
As for Mr. Kovner, he has stepped back from managing his behemoth of a hedge fund. He stepped down as Caxton’s chief investment officer in 2008 and as its chief executive officer in 2011. He still manages his own investments under a new fund titled CAM Capital. According to Forbes Magazine, Mr. Kovner’s latest net worth estimate sees him worth $6.4 billion, making him one of the richest people in the world.
A cursory look at Caxton Associates’ portfolio reveals that it has invested in all types of firms, ranging from technology to healthcare. The portfolio was worth $982 million as the fourth quarter of last year came to an end, and some of the renowned companies in it are Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and General Electric Company (NYSE:GE).
Bruce Kovner of Caxton Associates LP
Our Methodology
In order to narrow down Caxton Associates’s top cheap stocks from the countless companies present in its investment portfolio, we took a look at the firm’s filings with the Securities and Exchange Commission for the fourth quarter of last year. After the companies were selected, we then analyzed them through their quarterly results, investor reports, analyst ratings, large investors, and overall hedge fund sentiment gathered through Insider Monkey’s survey of 924 hedge funds for Q4 2021.
Stocks Under $30 to Invest in According to Caxton Associates
10. FutureFuel Corp. (NYSE:FF)
Caxton Associate’s Stake Value: $1.1 million
Percentage of Caxton Associates’s 13F Portfolio: 0.11%
Number of Hedge Fund Investors: 13
Stock Price as of May 17, 2022: $6.81
FutureFuel Corp. (NYSE:FF) is an American chemicals and biofuel provider that is headquartered in Saint Louis, Missouri. The company provides chemicals to a host of industries such as agriculture, industrials, and oil and gas exploration. Additionally, it also provides petrodiesel and biodiesel.
Mr. Kovner’s hedge fund held a $1.1 million stake in FutureFuel Corp. (NYSE:FF) as the fourth quarter of last year came to an end. This was in the form of 144,281 shares and it represented 0.11% of the firm’s investment portfolio. Insider Monkey’s Q4 2021 924 hedge fund survey revealed that 13 had also invested in the company.
FutureFuel Corp. (NYSE:FF)’s fiscal first quarter results saw it report $42 million in revenue and -$0.28 in GAAP EPS, as it marked a small 1.9% annual revenue growth.
FutureFuel Corp. (NYSE:FF)’s largest investor is Jim Simons’s Renaissance Technologies which owns 1.8 million shares that are worth $14 million.
FutureFuel Corp. (NYSE:FF) joins NVIDIA Corporation (NASDAQ:NVDA), Microsoft Corporation (NASDAQ:MSFT), and General Electric Company (NYSE:GE) in the list of Caxton Associates’s favorite stocks.
9. New York Community Bancorp, Inc. (NYSE:NYCB)
Caxton Associate’s Stake Value: $1.1 million
Percentage of Caxton Associates’s 13F Portfolio: 0.11%
Number of Hedge Fund Investors: 30
Stock Price as of May 17, 2022: $9.34
New York Community Bancorp, Inc. (NYSE:NYCB) is an American community bank that is also one of the oldest of its kind in the world. The bank was founded in Hicksville, New York in 1859 and it offers a range of services and products such as leases, loans, checking accounts, saving accounts, and deposit certificates.
New York Community Bancorp, Inc. (NYSE:NYCB) raked in $346 million in revenue and $0.32 in non-GAAP EPS during its fiscal Q1, in a mixed bag of results that saw it beat analyst EPS estimates but miss them for revenue. Stephens reduced its price target to $9 from $12 in May 2022 as it stated uncertainty about a business deal.
Caxton Associates owned 92,116 New York Community Bancorp, Inc. (NYSE:NYCB) shares during 2021’s final quarter. These enabled it to own a $1.1 million stake which then represented another 0.11% of its investment portfolio. For the same time period, Insider Monkey profiled 924 hedge funds to discover that 30 had also invested in the bank.
New York Community Bancorp, Inc. (NYSE:NYCB)’s largest investor is Schonfeld Strategic Advisors which owns 5.9 million shares that are worth $72 million.
8. KT Corporation (NYSE:KT)
Caxton Associate’s Stake Value: $1.2 million
Percentage of Caxton Associates’s 13F Portfolio: 0.12%
Number of Hedge Fund Investors: 12
Stock Price as of May 17, 2022: $14.44
KT Corporation (NYSE:KT) is a Korean telecommunications services and platform provider that is headquartered in Seongnam, South Korea. The company offers fixed telephone services, broadband internet coverage, financial payments, and business finance as part of its diverse portfolio.
For its fourth quarter of 2021 investments, Mr. Kovner’s investment firm owned a $1.2 million stake in KT Corporation (NYSE:KT). This came through the fund holding 98,967 shares of the company. Insider Monkey took a look at 924 hedge funds’ investments for Q4 2021 and found out that 12 had also invested in KT Corporation (NYSE:KT).
KT Corporation (NYSE:KT) reported KRW6.6 trillion in revenue and KRW424 billion in net income during its fiscal fourth quarter, marking a 6.7% annual revenue growth. BofA set an $18.74 price target for the company in April 2022, highlighting that it has a strong and balanced portfolio.
David Iben’s Kopernik Global Investors is KT Corporation (NYSE:KT)’s largest investor. It owns 8.6 million shares that are worth $108 million.
7. AGNC Investment Corp. (NASDAQ:AGNC)
Caxton Associate’s Stake Value: $1.3 million
Percentage of Caxton Associates’s 13F Portfolio: 0.12%
Number of Hedge Fund Investors: 21
Stock Price as of May 17, 2022: $12.07
AGNC Investment Corp. (NASDAQ:AGNC) is an American real estate investment trust (REIT) that is based in Bethesda, Maryland. The firm invests in mortgage securities that have been backed by the United States government.
For its fiscal Q1, AGNC Investment Corp. (NASDAQ:AGNC) reported $0.72 in non-GAAP EPS which beat analyst estimates. RBC Capital reduced its share price target to $14 from $17 in May 2022 as it stated that the mortgage backed securities market is doing well at the moment.
Mr. Kovner’s investment firm held 84,061 AGNC Investment Corp. (NASDAQ:AGNC) shares as the fourth quarter of last year came to an end. These allowed it to have a $1.3 million stake that represented 0.12% of its investment portfolio. For the same time period, 21 of the 924 hedge funds part of Insider Monkey’s research had also invested in the company.
AGNC Investment Corp. (NASDAQ:AGNC)’s largest investor is Joshua Friedman and Mitchell Julis’s Canyon Capital Advisors which owns 3.3 million shares that are worth $51 million.
6. SLM Corporation (NASDAQ:SLM)
Caxton Associate’s Stake Value: $1.3 million
Percentage of Caxton Associates’s 13F Portfolio: 0.13%
Number of Hedge Fund Investors: 18
Stock Price as of May 17, 2022: $17.69
SLM Corporation (NASDAQ:SLM) is an American loan provider that is headquartered in Newark, Delaware. The firm focuses its attention solely on the educational loan segment, and it also offers other services such as deposit and other accounts.
Caxton Associates’s Q4 2021 investment stake in SLM Corporation (NASDAQ:SLM) was worth $1.3 million and it came through the hedge fund holding 68,569 shares of the company. Insider Monkey surveyed 924 hedge funds for 2021’s December quarter to discover that 18 had also bought SLM Corporation (NASDAQ:SLM)’s shares.
By the end of its fiscal Q1, SLM Corporation (NASDAQ:SLM) had raked in $397 million in revenue and $0.45 in GAAP EPS, allowing it to beat analyst revenue estimates only. Citi lowered its price target to $21 from $26 in May 2022, sharing concerns about gain accounting.
SLM Corporation (NASDAQ:SLM)’s largest investor is Jeffrey Ubben’s ValueAct Capital which owns 14.6 million shares that are worth $287 million.
Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), and General Electric Company (NYSE:GE) are met by SLM Corporation (NASDAQ:SLM) in the list of Caxton Associates’ best stock picks.
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Disclosure: None. 10 Stocks Under $30 to Invest in According to Bruce Kovner’s Caxton Associates is originally published on Insider Monkey.
