Get Premium to unlock powerful stock data

Caxton Associates Drives Further Into Tesla in the 3rd Quarter

Macro hedge fund releases quarterly portfolio

Author's Avatar
Nov 30, 2021
Summary
  • Fund boosts stake in Tesla and establishes position in Pfizer.
  • Fund also exits holding in Baidu.
  • Fund reduces positions in Sunrun and TPI Composites.
Article's Main Image

Caxton Associates (Trades, Portfolio), a global macro hedge fund, disclosed in November 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.

1465762044363108352.png

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.

1465435447315623936.png

Tesla

Caxton added 95,522 shares of Tesla (

TSLA, Financial), boosting the position by 115.83% and its equity portfolio by 8.18%.

1465436060128604160.png

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.

1465436550811840512.png

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.

1465437991672705024.png

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.

1465438607337811968.png

Pfizer

Caxton invested in 1.48 million shares of Pfizer (

PFE, Financial), giving the stake 7.03% equity portfolio weight.

1465438915480743936.png

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.

1465440413497389056.png

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.

1465711657060888576.png

Baidu

The firm sold all 417,600 shares of Baidu (

BIDU, Financial), trimming 9.34% of its equity portfolio.

1465712860759027712.png

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.

1465713156205801472.png

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.

1465716565709385728.png

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.

1465716950935236608.png

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.

1465717540985729024.png

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.

1465720093899190272.png

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.

1465723896476168192.png

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.

1465727469641494528.png

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.

1465733489784745984.png

Also check out:

Disclosures

I am/we are Long PFE
The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com
Rating:
0 / 5 (0 votes)
Author's Avatar
WRITTEN BY

GuruFocus Screeners

Related Articles

Q&A with Gurus