Bruce Kovner is the founder and chairman of Caxton Associates LLC and chairman of CxSynta LLC. He has more than 30 years experience. Kovner set up Caxton in 1983 and became one of the first hedge fund managers who tried to profit from macroeconomic trends through assets such as stock indexes, bonds, currencies and commodities.
Stocks Bruce Kovner keeps buying are:
Bank of America Corporation (BAC):
Bank of America is one of the largest financial institutions in the U.S. and the world. The company operates in all 50 states.
Financially speaking the sale of its China Construction Bank stake has helped it in liability adjustments and resulted in millions in gains. All together, this has enabled the firm to report net income of $6.2 billion, or $0.56 per diluted share, for the third quarter of 2011. Most importantly Bank of America managed to build capital during the quarter, increasing its reported tangible common equity ratio to 6.25% from 5.87%.
Constellation Energy Group Inc. (CEG):
Constellation Energy Group Inc. is a diversified energy company with regulated and merchant businesses. CEG is characterized by a diversified customer base with geographical disparity and a diversified power energy portfolio too. The latter has helped the company build a strong balance sheet.
CEG’s operations include New Energy supply, power generation and BGE, a regulated electric and gas public utility in central Maryland. New Energy supplies 30,000 retail and wholesale electric and gas customers in the U.S. thanks to its power generation capacity.
Constellation Energy merged with Exelon Corporation to boost earnings. The merger will also reduce collateral costs for its competitive businesses.
The presence of Constellation in the U.S. and Canada provides stable and growing earnings. The company is the U.S.'s largest competitive supplier of power to utility, municipal, commercial and industrial customers.
Medco Health Solutions Inc. (MHS):
Medco Health Solutions is the nation's largest pharmacy benefit manager. It works through its mail-order pharmacy and network of retail pharmacies.
Medco provides medicine to a large portion of U.S. population. Medco is expected to greatly benefit from the expansion of health care to many uninsured individuals. They represent new customers for Medco.
Controlling health-care spending growth will become even more critical as this group increases its consumption of health care.
Priceline.com Inc. (PCLN):
Priceline is an online travel aggregator that offers booking services for hotel rooms, airline tickets, rental cars, cruises and other vacation packages. The company operates under the Priceline.com name in the United States, Booking.com in Europe, and Agoda in Asia. TravelJigsaw was its latest acquisition aimed at expanding its global footprint in car rental.
Priceline had $2.4 billion in cash and short-term investments at the end of September 2011 and about $575 million in senior convertible debt due 2015.
Now, Priceline is expecting to reinvest cash overseas to be able to start international operations. Its current cash position and cash flows should be sufficient to allow the firm to comfortably pay down debt, buy back shares and fund growth initiatives.
Marathon Oil Corp (MRO):
Marathon Oil is an independent exploration and production company with activities in the U.S., Angola, Indonesia and Norway.
A spin-off has enabled Marathon to reduce its debt to about $5 million. This has resulted in comfortable leverage ratios and flexibility for additional deals.
Exploration success in the Gulf of Mexico, Kurdistan and Indonesia could provide additional long-term growth. Marathon's liquefied natural gas facility in Equatorial Guinea allows the company to include abandoned resources to market.
Marathon struggled with large projects in the past. Fortunately, the investment in shale gases has enabled the firm to move from them.