5 New Stock Picks of Bruce Kovner’s Caxton Associates

1. Freeport-McMoRan Inc. (NYSE:FCX)

Caxton Associates’ Stake Value: $186,973,000

Percentage of Caxton Associates’ 13F Portfolio: 15.21%

Number of Hedge Fund Holders: 68

Freeport-McMoRan Inc. (NYSE:FCX) is an Arizona-based mining company with mineral properties in North America, South America, and Indonesia. The company mainly explores for copper, gold, molybdenum, silver, and other precious metals. Caxton Associates purchased 3.75 million shares of Freeport-McMoRan Inc. (NYSE:FCX) in Q1 2022, worth about $187 million, representing 15.21% of the total 13F portfolio. 

On July 15, Deutsche Bank analyst Abhi Agarwal placed a “Catalyst Call: Sell” on Freeport-McMoRan Inc. (NYSE:FCX) as a short-term investment theme. The analyst expects Freeport-McMoRan Inc. (NYSE:FCX)’s Q2 results to be disappointing. He sees a “significant miss” versus consensus estimates on EBITDA, caused by negative provisional pricing. The analyst also projects Freeport-McMoRan Inc. (NYSE:FCX)’s cash cost guidance to increase, due to lower by-product prices and increased inflation.

Among the hedge funds tracked by Insider Monkey, 68 funds were bullish on Freeport-McMoRan Inc. (NYSE:FCX) at the end of March 2022, up from 66 funds in the prior quarter. Ric Dillon’s Diamond Hill Capital is the leading shareholder of the company, with more than 12 million shares worth $603.85 million. 

Here is what Carillon Scout Mid Cap Fund has to say about Freeport-McMoRan Inc. (NYSE:FCX) in its Q1 2022 investor letter:

“Supply chains eased for some goods, but remained challenged for many commodities including energy, agriculture, and fertilizer due to war and general scarcity, and also in many consumer products as semiconductors remained in short supply. Copper and gold producer Freeport- McMoRan (NYSE:FCX) rose as copper prices remained strong due to supply shortages and growing use in renewable energy systems and electric vehicles.”

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