In this article, we discuss 5 new stock picks of Bruce Kovner’s Caxton Associates. If you want to see more new holdings of Caxton Associates, check out 10 New Stock Picks of Bruce Kovner’s Caxton Associates.
5. Matson, Inc. (NYSE:MATX)
Caxton Associates’ Stake Value: $1,862,000
Percentage of Caxton Associates’ 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 22
Matson, Inc. (NYSE:MATX) is a Hawaiian company that specializes in ocean transportation and logistics services. Caxton Associates added Matson, Inc. (NYSE:MATX) to its Q1 portfolio by acquiring 15,438 shares worth $1.86 million, representing 0.15% of the total holdings.
On June 23, Matson, Inc. (NYSE:MATX) declared a $0.31 per share quarterly dividend, a 3.3% increase from its prior dividend of $0.30. The dividend is payable on September 1, shareholders of record as of August 4. Matson, Inc. (NYSE:MATX) delivers a dividend yield of 1.64% as of July 15.
Stifel analyst Benjamin Nolan on June 24 reiterated a Buy recommendation on Matson, Inc. (NYSE:MATX). He noted that President Biden signed the Ocean Shipping Reform Act on June 16, which may improve the shipping conditions of U.S. exporters, but it will be costly to consumers.
According to Insider Monkey’s data, 22 hedge funds were long Matson, Inc. (NYSE:MATX) in Q1 2022, up from 19 funds in the last quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the largest stakeholder of the company, with 213,128 shares worth $25.70 million.
4. Alpha Metallurgical Resources, Inc. (NYSE:AMR)
Caxton Associates’ Stake Value: $1,869,000
Percentage of Caxton Associates’ 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 30
Alpha Metallurgical Resources, Inc. (NYSE:AMR) was incorporated in 2016 and is headquartered in Bristol, Tennessee. It is a mining company that produces and sells met and thermal coal in Virginia and West Virginia. Caxton Associates, as of Q1 2022, owned 14,167 shares of Alpha Metallurgical Resources, Inc. (NYSE:AMR), worth $1.86 million, representing 0.15% of the total 13F holdings.
On July 12, Cowen analyst Lance Vitanza initiated coverage of Alpha Metallurgical Resources, Inc. (NYSE:AMR) with an Outperform rating and a $215 price target. As per the analyst, Alpha Metallurgical Resources, Inc. (NYSE:AMR) “stands out” as the leading local producer and exporter of met coal and is positioned to benefit from the “significant tailwinds” that have pushed the global met coal industry “into high gear”.
Among the hedge funds tracked by Insider Monkey, 30 funds were long Alpha Metallurgical Resources, Inc. (NYSE:AMR) at the end of Q1 2022, with combined stakes worth $671.3 million. Sander Gerber’s Hudson Bay Capital Management is the leading position holder in the company, with 859,597 shares valued at $113.4 million.
3. 3M Company (NYSE:MMM)
Caxton Associates’ Stake Value: $1,914,000
Percentage of Caxton Associates’ 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 51
3M Company (NYSE:MMM) is a diversified technology company that operates through four segments – Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. 3M Company (NYSE:MMM) is a reliable dividend king, with 62 consecutive years of dividend increases under its belt. The company’s dividend yield on July 15 stood at 4.58%.
Securities filings for Q1 2022 reveal that Caxton Associates added 3M Company (NYSE:MMM) to its portfolio by purchasing 12,858 shares worth $1.9 million, representing 0.15% of the total 13F holdings.
Deutsche Bank analyst Nicole DeBlase on July 13 reiterated a Hold rating on 3M Company (NYSE:MMM) and lowered the price target on the stock to $146 from $164. The analyst sees a “difficult” Q2 landscape for the multi-industry group. Companies are not yet reporting indications of demand weakness, which means estimates are possibly too high, the analyst told investors.
According to Insider Monkey’s data, 51 hedge funds were bullish on 3M Company (NYSE:MMM) at the end of Q1 2022, up from 41 funds in the prior quarter. Ken Fisher’s Fisher Asset Management featured as the largest stakeholder of the company, with 6 million shares worth $898 million.
2. Aptiv PLC (NYSE:APTV)
Caxton Associates’ Stake Value: $154,833,000
Percentage of Caxton Associates’ 13F Portfolio: 12.59%
Number of Hedge Fund Holders: 48
Aptiv PLC (NYSE:APTV) is an Irish company that manufactures and sells vehicles. The company specializes in electronic and safety technology solutions to the commercial vehicle markets. Caxton Associates added Aptiv PLC (NYSE:APTV) to its Q1 portfolio by buying about 1.3 million shares worth $154.8 million, representing 12.59% of the total holdings.
On July 14, Morgan Stanley analyst Adam Jonas reaffirmed an Overweight rating on Aptiv PLC (NYSE:APTV) and lowered the price target on the stock to $149 from $155. He is making “material cuts” to FY 23 estimates across his autos and shared mobility coverage to account for weak growth and credit headwinds, said the analyst.
According to Insider Monkey’s data, 48 hedge funds were long Aptiv PLC (NYSE:APTV) at the end of March 2022, up from 44 funds in the preceding quarter. Ian Simm’s Impax Asset Management is the leading stakeholder of the company, with roughly 4.7 million shares worth $562.2 million.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Aptiv PLC (NYSE:APTV) in its Q1 2022 investor letter:
“The acceleration in electrification of transport should support electric vehicle (EV)-related stocks like Aptiv (NYSE:APTV), which came under pressure in the quarter on concerns the auto cycle is past its peak. Aptiv provides a range of solutions for the auto industry, including autonomous driving technologies, safety technologies, components, and wiring. The large exposure of APTV to EVs should lead to long-term value as EVs continue their growth, boosted by their relative attractiveness as prices at the pump hit near-historic highs.”
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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