Caxton Associates Exits Coca-Cola, Buys Raytheon

Fund's largest 2nd quarter trades

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Sep 13, 2016
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Caxton Associates (Trades, Portfolio) LP is a New York-based trading and investment firm. Its primary business is to manage client and proprietary capital through global macro hedge fund strategies. Assets are managed via a broad mandate to trade in a variety of global markets and instruments. During the second quarter, the fund’s most heavily weighted trades were as follows:

The firm closed its stake in Coca-Cola Co. (KO) with an impact of -5.68% on the portfolio.

The company manufactures, distributes and markets non-alcoholic beverage concentrates and syrups. Second quarter net revenues declined 5%, but organic revenues grew 3% and global volume grew 1% year to date and was even in the quarter.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 28.95% and ROA of 8.24%, which are outperforming 68% of the companies in the Global Beverages - Soft Drinks industry. Financial strength has a rating of 6 out of 10, with a cash to debt ratio of 0.50 that is below the industry median of 0.77.

The largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 9.27% of outstanding shares, followed by Donald Yacktman (Trades, Portfolio) with 0.39%, Jeremy Grantham (Trades, Portfolio) with 0.29%, Ken Fisher (Trades, Portfolio) with 0.24% and Yacktman Fund (Trades, Portfolio) with 0.21%.

Caxton reduced its stake in Barrick Gold Corp. (ABX) by 34.28%, with an impact of 3.8% on the portfolio.

The company's business activities includes exploration and mine development. It holds interests in oil and gas properties located in Canada. During the second quarter, it reported net earnings of $138 million (12 cents per share) and adjusted net earnings of $158 million (14 cents per share). Its EBITDA was $881 million.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10 with ROE of -35.68% and ROA of -10.39%, which are underperforming 71% of the companies in the Global Gold industry. Financial strength has a rating of 4 out of 10, with a cash to debt ratio of 0.27 that is below the industry median of 30.25.

First Eagle Investment (Trades, Portfolio) is another notable shareholder of the company among the gurus, with 3.22% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 1.5%, Caxton Associates (Trades, Portfolio) with 0.65%, Ray Dalio (Trades, Portfolio) with 0.18%, Stanley Druckenmiller (Trades, Portfolio) with 0.16%, Louis Moore Bacon (Trades, Portfolio) with 0.13%, George Soros (Trades, Portfolio) with 0.09% and John Hussman (Trades, Portfolio) with 0.08%.

The firm closed its stake in Freeport-McMoRan Inc Class B. (FCX) with an impact of -1.77% on the portfolio.

The company formerly Freeport-McMoRan Copper & Gold, deals in the mining of copper, gold and molybdenum. Second quarter net losses attributable to common stock was $479 million, or 38 cents per share, compared with $1.85 billion, or $1.78 per share, for second-quarter 2015.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with ROE of -156.11% and ROA of -26.69%, which are underperforming 90% of the companies in the Global Copper industry. Financial strength has a rating of 3 out of 10, with a cash to debt ratio of 0.02 that is far below the industry median of 30.25.

The largest shareholder among the gurus is Carl Icahn (Trades, Portfolio) with 7.83% of outstanding shares, followed by Mario Gabelli (Trades, Portfolio) with 0.37%, Stanley Druckenmiller (Trades, Portfolio) with 0.26%, Jim Simons (Trades, Portfolio) with 0.25%, John Burbank (Trades, Portfolio) with 0.07% and Jeremy Grantham (Trades, Portfolio) with 0.04%.

The firm raised its stake in Monster Beverage Corp. (MNST) by 38.55%, with an impact of 1.69% on the portfolio.

The company, through its subsidiaries, markets and distributes energy drinks. It offers energy drinks including Monster Energy, Java Monster, Monster Rehab, NOS, Full Throttle Mother, Power Play and Ultra energy drinks. Gross sales for the 2016 second quarter increased 19.7% and net sales increased 19.3%.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 14.70% and ROA of 12.25%, which are outperforming 62% of the companies in the Global Beverages - Soft Drinks industry. Financial strength has a rating of 9 out of 10, with no debt.

Steve Mandel (Trades, Portfolio) is the largest shareholder among the gurus with 2.18% of outstanding shares, followed by Spiros Segalas (Trades, Portfolio) with 1.15%, Caxton Associates (Trades, Portfolio) with 0.72%, Jim Simons (Trades, Portfolio) with 0.1%, Steven Cohen (Trades, Portfolio) with 0.09% and Pioneer Investments (Trades, Portfolio) with 0.05%.

Caxton acquired 1,896,100 shares in Goodyear Tire & Rubber Co. (GT) with an impact of 1.34% on the portfolio.

The company is engaged in manufacturing tires. It develops, manufactures, markets and distributes tires for various applications. It also manufactures and markets rubber-related chemicals for various applications.

GuruFocus gives the stock a profitability and growth rating of 4 out of 10 with ROE of 6.82% and ROA of 1.63%, which are underperforming 68% of the in the Global Rubber & Plastics industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 0.18 that is below the industry median of 0.74.

The largest shareholder among the gurus is Diamond Hill Capital (Trades, Portfolio) with 2.22% of outstanding shares, followed by HOTCHKIS & WILEY with 1.21%, Pioneer Investments (Trades, Portfolio) with 0.64%, Steven Cohen (Trades, Portfolio) with 0.34%, David Tepper (Trades, Portfolio) with 0.27%, Jeremy Grantham (Trades, Portfolio) with 0.12% and John Buckingham (Trades, Portfolio) with 0.08%.

The firm increased its stake in Raytheon Co. (RTN) by 1,776%, with an impact of 1.33% on the portfolio.

The company offers air and missile defense, radar solutions, naval combat and ship electronic systems, and command, control and communications systems. Second quarter 2016 EPS from continuing operations was $2.38 compared to $1.65 in the second quarter of a year before. It reported 3.2% growth for net sales.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10 with ROE of 21.23% and ROA of 7.44%, which are outperforming 81% of the companies in the Global Aerospace & Defense industry. Financial strength has a rating of 6 out of 10, with a cash to debt ratio of 0.51 that is above the industry median of 0.40.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus, with 1.66% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.9%, First Eagle Investment (Trades, Portfolio) with 0.3%, NWQ Managers (Trades, Portfolio) with 0.16% and Steven Cohen (Trades, Portfolio) with 0.06%.

Caxton raised its stake in The Kraft Heinz Co. (KHC) by 13.49%, with an impact of 1.05% on the portfolio.

It is a consumer packaged food and beverage company. It manufactures and markets food and beverage products, including cheese, meats, refreshment beverages, packaged dinners, snack nuts and other grocery products. During the second quarter. due to the merger of Kraft and Heinz, GAAP net sales increased 160% and GAAP operating income increased 268%.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10 with ROE of 3.47% and ROA of 2.31%, which are underperforming 65% of the companies in the Global Packaged Foods industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 0.13 that is below the industry median of 0.66.

The largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 26.74% of outstanding shares, followed by David Rolfe (Trades, Portfolio) with 0.32%, John Griffin (Trades, Portfolio) with 0.19%, Steven Cohen (Trades, Portfolio) with 0.04%, George Soros (Trades, Portfolio) with 0.03% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

The firm increased its stake in Whirlpool Corp. (WHR) by 1,808%, with an impact of 1.04% on the portfolio.

It is a manufacturer and marketer of home appliances. It produces and sells washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, air purifiers and other typical household appliances. During the last quarter, GAAP earnings per diluted share increased 88% to $4.15, while ongoing earnings per share increased 30% to $3.50, compared with the second quarter of prior-year.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10 with ROE of 18.31% and ROA of 4.53%, which are outperforming 55% of the companies in the Global Home Furnishings & Fixtures industry. Financial strength has a rating of 5 out of 10, with a cash to debt ratio of 0.18 that is below the industry median of 1.26.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus, with 2.82% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 2.47%, Bill Nygren (Trades, Portfolio) with 2.29%, David Tepper (Trades, Portfolio) with 1.73%, Ken Heebner (Trades, Portfolio) with 0.95% and Pioneer Investments (Trades, Portfolio) with 0.43%.

Disclosure: Of the stocks mentioned in this article, I just own a few shares of RTN.

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