Caxton Associates (Trades, Portfolio), a global macro hedge fund, disclosed in a regulatory portfolio filing that its top five trades during the third quarter included a boost to its holding in Tesla Inc. (TSLA, Financial), a new holding in Pfizer Inc. (PFE, Financial), the closure of its stake in Baidu Inc. (BIDU, Financial) and reductions to its stakes in Sunrun Inc. (RUN, Financial) and TPI Composites Inc. (TPIC, Financial).
The New York-based firm manages client and proprietary capital through global macro hedge fund strategies. Caxton makes bets on macroeconomic trends through a wide range of liquid assets, including stocks, bonds, currencies and commodities. The firm believes in following market trends and making gains from short-term price movements instead of holding stocks for the long term.
As of Sept. 30, the firm’s $905 million equity portfolio contains 435 stocks, with 182 new holdings and a turnover ratio of 43%. The top three sectors in terms of weight are consumer cyclical, health care and technology, representing 28.95%, 16.53% and 13.58% of the equity portfolio.
Tesla
Caxton added 95,522 shares of Tesla (TSLA, Financial), boosting the position by 115.83% and its equity portfolio by 8.18%.
Shares of Tesla averaged $706.10 during the third quarter; the stock is significantly overvalued based on Tuesday’s price-to-GF Value ratio of 4.44.
GuruFocus ranks the Palo Alto, California-based electric vehicle giant’s financial strength 6 out of 10 on the back of a high Piotroski F-score of 7 and a strong Altman Z-score of 22.94 despite interest coverage and debt ratios outperforming just over half of global competitors.
Other gurus with holdings in Tesla include Baillie Gifford (Trades, Portfolio), Ron Baron (Trades, Portfolio)’s Baron Funds and Catherine Wood (Trades, Portfolio)’s ARK Investment.
Pfizer
Caxton invested in 1.48 million shares of Pfizer (PFE, Financial), giving the stake 7.03% equity portfolio weight.
Shares of Pfizer averaged $44.27 during the third quarter; the stock is modestly undervalued based on Tuesday’s price-to-GF Value ratio of 0.86.
GuruFocus ranks the New York-based drug manufacturer’s profitability 7 out of 10 on the back of profit margins and returns outperforming more than 90% of global competitors despite three-year revenue and earnings growth rates underperforming over 75% of global drug manufacturers.
Baidu
The firm sold all 417,600 shares of Baidu (BIDU, Financial), trimming 9.34% of its equity portfolio.
Shares of Baidu averaged $164.72 during the third quarter; the stock is modestly undervalued based on Tuesday’s price-to-GF Value ratio of 0.88.
GuruFocus ranks the Beijing-based online search giant’s profitability 8 out of 10 on the back of profit margins that outperform more than 64% of global competitors despite returns and three-year revenue growth rates outperforming just over 55% of global interactive media companies.
Sunrun
The firm sold 1,344,100 shares of Sunrun (RUN, Financial), shredding 94.72% of the holding and 8.22% of its equity portfolio.
Shares of Sunrun averaged $47.82 during the third quarter; the stock is significantly overvalued based on Tuesday’s price-to-GF Value ratio of 2.22.
GuruFocus ranks the San Francisco-based solar company’s financial strength 2 out of 10 on several warning signs, which include a low Piotroski F-score of 3, a weak Altman Z-score of 0.63 and a debt-to-equity ratio that underperforms more than 88% of global competitors.
TPI Composites
The firm sold 800,800 shares of TPI Composites (TPIC, Financial), axing 97.29% of the position and 4.25% of its equity portfolio.
Shares averaged $39.36 during the third quarter; the stock is significantly undervalued based on Tuesday’s price-to-GF Value ratio of 0.48.
GuruFocus ranks the Scottsdale, Arizona-based company's financial strength 4 out of 10 on several warning signs, which include a low Piotroski F-score of 3, a weak Altman Z-score of 1.97 and interest coverage and debt ratios that are underperforming over 90% of global competitors.
