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Caxton Associates, Major Cuts to AIG, GM, F and Others

September 03, 2013 | About:
Sally Jones

Sally Jones

49 followers
Founded by Guru Bruce Kovner in 1983, Caxton Associates LP is a New York-based investment firm and one of the world’s leading hedge funds. Caxton Associates currently manages around $7.5 billion in assets and is led by Andrew E. Law, chairman and CEO. The firm uses global macro hedge fund strategies, via a variety of global markets and instruments.

Caxton Associate’s recently updated portfolio lists 145 stocks, 77 of them new, with a total value of $1.98 billion and a quarter-over-quarter turnover of 31%. The portfolio is currently weighted with top three sectors: financial services at 14.4%, consumer cyclical at 13.4% and technology at 11.9%.

In the second quarter of 2013, Caxton Associates made its largest reductions in insurance and auto companies that are up 34% or more over 12 months. Here are the five highest-impact reductions, made by Caxton Associates as of June 30, 2013:

American International Group Inc. (AIG): Reduced

Impacts Portfolio: -11.31%

Up 34% over 12 months, American International Group Inc. has a market cap of $68.59 billion; its shares were traded at around $46.46 with a P/E ratio of 26.20.

American International Group Inc. is a holding company for its subsidiaries engaged in a range of insurance and insurance-related activities in the U.S. and abroad.

Guru Action: As of June 30, 2013, Caxton Associates reduced its position by 89.74%, selling 4,673,078 shares at an average price of $42.90, for a gain of 8.3%. Current shares stand at 534,000.

Over five years of trading, the firm has averaged a gain of 44% on 10,503,929 shares bought at an average price of $32.26 per share. On shares sold, the firm averaged a gain of 17% on 9,969,929 shares sold at an average price of $39.75 per share.

Track historical pricing, revenue and net income:

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General Motors Co. (GM): Reduced

Impacts Portfolio: -7.67%

Up 60% over 12 months, General Motors Co. has a market cap of $47.17 billion; its shares were traded at around $34.08 with a P/E ratio of 9.60.

Founded in 1908, General Motors Company designs, makes and markets cars, trucks and parts worldwide, through three business segments: General Motors North America (GMNA), General Motors Europe (GME) and General Motors International Operations (GMIO).

Guru Action: As of June 30, 2013, Caxton Associates reduced its position by 87.17%, selling 4,418,224 shares at an average price of $31.68, for a gain of 7.6%. Current shares stand at 650,000.

The firm has averaged a gain of 33% on 5,068,224 shares bought at an average price of $25.63 per share. On shares sold, the firm averaged a gain of 8% on 4,418,224 shares sold at an average price of $31.68 per share.

Track historical pricing, revenue and net income:

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Ford Motor Co. (F): Reduced

Impacts Portfolio: -4.89%

Up 72% over 12 months, Ford Motor Co. has a market cap of $63.78 billion; its shares were traded at around $16.19 with a P/E ratio of 10.70.

Incorporated in 1919, Ford Motor Company is a global producer of cars and trucks. The company operates in two business segments: automotive and financial services.

Guru Action: As of June 30, 2013, Caxton Associates reduced its position by 92.31%, selling 6,006,050 shares at an average price of $14.34, for a gain of 12.9%. Current shares stand at 500,000.

The firm has averaged a gain of 47% on 8,824,521 shares bought at an average price of $11.05 per share. On shares sold, the firm averaged a gain of 14% on 8,324,521 shares sold at an average price of $14.18 per share.

Track historical pricing, revenue and net income:

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Morgan Stanley (MS): Reduced

Impacts Portfolio: -2.93%

Up 66% over 12 months, Morgan Stanley has a market cap of $50.45 billion; its shares were traded at around $25.76 with a P/E ratio of 41.50.

Morgan Stanley was originally incorporated 1981. It is a global financial services firm that, through its subsidiaries and affiliates, provides products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals.

Guru Action: As of June 30, 2013, Caxton Associates reduced its position by 29.04%, selling 2,142,614 shares at an average price of $23.72, for a gain of 8.6%. Current shares stand at 5,235,004.

In a mixed-result five-year history, the firm has averaged a gain of 18% on 7,377,618 shares bought at an average price of $21.87 per share. On shares sold, the firm averaged a gain of 9% on 2,142,614 shares sold at an average price of $23.72 per share.

Track historical pricing, revenue and net income:

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Anadarko Petroleum Corp. (APC): Reduced

Impacts Portfolio: -2.7%

Up 32% over 12 months, Anadarko Petroleum Corp. has a market cap of $45.96 billion; its shares were traded at around $91.42 with a P/E ratio of 27.00.

Anadarko Petroleum Corporation is an independent oil and gas exploration and production company, with operations located onshore in the U.S. and in the Gulf of Mexico, as well as in Algeria, Brazil, China, Cote d'Ivoire, Ghana, Indonesia, Mozambique, Sierra Leone and other countries.

Guru Action: As of June 30, 2013, Caxton Associates reduced its position by 50%, selling 500,000 shares at an average price of $86.07, for a gain of 6.2%. Current shares stand at 500,000.

The firm has averaged a gain of 12% on 1,000,000 shares bought at an average price of $81.61 per share. On shares sold, the firm averaged a gain of 6% on 500,000 shares sold at an average price of $86.07 per share.

Track historical pricing, revenue and net income:

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Caxton’s founder Guru Bruce Kovner, is now retired. His net worth is an estimated $4.5 billion.

Here is the complete portfolio of Bruce Kovner.



Also check out:

1. Bruce Kovner's Undervalued Stocks

2. Bruce Kovner's Top Growth Companies

3. Bruce Kovner's High Yield stocks

4. Stocks that Bruce Kovner keeps buying

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire investors.

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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.7/5 (3 votes)

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