Below is the list of Bruce Kovner’s top 5 stock picks. For a detailed analysis of billionaire Kovner’s investment philosophy and his hedge fund’s returns, go to Billionaire Bruce Kovner’s Trading Strategy and Top 10 Picks
5. iShares Silver Trust (NYSE: SLV)
Number of Hedge Fund Holders: 28
Caxton Associates initiated a big position in iShares Silver Trust (NYSE: SLV) during the fourth quarter, accounting for 1.71% of the overall portfolio. Launched and managed by iShares Delaware Trust Sponsor LLC, iShares Silver Trust is an exchange-traded fund seeking to track silver markets. The price of iShares Silver Trust rallied almost 70% in the last twelve months. The silver price, however, came under pressure this year due to investors move towards risky assets.
4. The AES Corporation (NYSE: AES)
Number of Hedge Fund Holders: 38
Utility stock The AES Corporation (NYSE: AES) was added to Caxton Associates portfolio during the fourth quarter. The firm held 2.1 million shares of AES at the end of December, accounting for 3.42% of the overall portfolio. AES Corporation’s share price grew 20% since the beginning of this year, enlarging twelve-month gains to 123%.
The number of long hedge fund bets moved up by 6 recently. The AES Corporation was in 38 hedge funds’ portfolios at the end of the fourth quarter of 2020 compared to 32 positions in the previous quarter.
3. Aptiv PLC (NYSE: APTV)
Number of Hedge Fund Holders: 44
The auto parts manufacturer Aptiv PLC (NYSE: APTV) has been a member of Bruce Kovner’s portfolio since the final quarter of 2019. The firm held 462,225 shares of Aptiv during the December quarter, accounting for 4.16% of the overall portfolio. The share price of Aptiv grew 138% in the last twelve-month on the back of robust demand.
In the Q1 2021 investor letter, Oakmark Funds stated reasons for eliminating its Aptiv PLC position. Here is what Oakmark Funds said:
“Aptiv approached our estimates of intrinsic value and was, therefore, eliminated during the period. The company was longstanding investment of the Fund and produced successful outcomes. We continue to believe that Aptiv is a well-positioned auto supplier that is likely to continue outgrowing light vehicle production for the foreseeable future, but this dynamic is now more fully appreciated by the market.”
2. iShares MSCI Emerging Markets ETF (NYSE: EEM)
Number of Hedge Fund Holders: 30
Caxton Associates significantly added to its existing position in iShares MSCI Emerging Markets ETF (NYSE: EEM) during the December quarter. The price of iShares MSCI Emerging Markets ETF (NYSE: EEM) surged 17% in the last six months. iShares MSCI Emerging Markets ETF is an exchange-traded fund launched by BlackRock. The fund invests in public equity markets of the global emerging region. iShares MSCI Emerging Markets ETF also offers semiannual dividends to investors.
1. SPDR Gold Shares (NYSE: GLD)
Number of Hedge Fund Holders: 62
Bruce Kovner’s Caxton Associates held a huge position SPDR Gold Shares (NYSE: GLD) at the end of 2020. The firm held 2.5 million shares of GLD at the end of December, accounting for 31.15% of the overall portfolio. The hedge fund first initiated a position in GLD at the beginning of last year. SPDR Gold Trust ETF price fell 6.17% since the beginning of this year. The gold price has been under pressure this year due to investors’ shift towards risky assets. SPDR Gold Trust is an exchange-traded fund launched and managed by World Gold Trust Services.
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