Here's What This Annual 20% Gainer Has Been Buying

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.

Today, let's look at Caxton Associates, founded in 1983 by Bruce Kovner (who stepped down in 2011). The investment company is known for relatively few years with negative returns, and also for average annual gains of about 20% since its inception several decades ago. That's a powerful record.

Caxton is also known for charging clients dearly for the privilege of going along for the ride. In an industry known for routinely charging 2% of assets annually while also taking 20% of profits, Caxton had long charged 3% and 30%, though that was reduced some last year.

The company's reportable stock portfolio totaled $1.6 billion in value as of March 31, 2013.

Interesting developments
So what does Caxton Associates' latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are Assured Guaranty and the SPDR Select Financial Sector ETF. Other new holdings of interest include Micron Technology (NASDAQ: MU  ) and Level 3 Communications (NYSE: LVLT  ) . The struggling PC market has hurt Micron, but bulls are hopeful that growth in tablets and smartphones will boost demand for memory chips. Micron's purchase of Japanese manufacturer Elpida has some investors quite optimistic, as it boosts Micron's capacity and its relationship with Apple. Micron has been losing market share, though, and some worry about the commoditization of memory and Micron's debt levels. Several analysts increased their price targets for the stock recently.

Level 3 Communications, long burdened with substantial debt, is expanding its services around the world, for example boosting its video broadcasting in Latin America. Many investors are steering clear, however, not liking its hefty debt, net losses, and negative free cash flow. (Its recent losses were smaller than analysts had expected, though.)

Among holdings in which Caxton Associates increased its stake was R. R. Donnelley (NASDAQ: RRD  ) . Commercial printer Donnelley provides labels, packaging, and more to the private and public sector. It prints many thousands of forms for the SEC, too, and bought Edgar Online. Bears worry about its steep debt load, though the company is free-cash-flow positive. Some also worry about a possible reduction of its dividend, which recently yielded nearly 8%. To succeed, the company needs to do more digital business. To that end, it recently sealed an eBook deal with Harlequin.

Caxton Associates reduced its stake in lots of companies, including Georgia-based Synovus Financial (NYSE: SNV  ) . Synovus has been posting strong return-on-equity (ROE) numbers. In May, it acquired $54 million in deposits from the failed Sunrise Bank. Bears worry about the bank's significant residential real estate business and the current low interest rate environment. It has also been working to pay off its TARP obligations.

Finally, Caxton Associates' biggest closed positions included Sprint Nextel and JPMorgan Chase. Other closed positions of interest include India-based ICICI Bank (NYSE: IBN  ) . In April, the bank reported double-digit profit increases and rising ROE. Analysts at Zacks downgraded the bank earlier this month, though, citing deterioration of its credit quality and expected steep operating expenses.

We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13-F forms can be great places to find intriguing candidates for our portfolios.


With big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new norma. or if finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether JPMorgan is a buy today, check out The Motley Fool's premium research report on the company. Click here now for instant access.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2494432, ~/Articles/ArticleHandler.aspx, 5/24/2016 4:18:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Selena Maranjian

Selena Maranjian has been writing for the Fool since 1996 and covers basic investing and personal finance topics. She also prepares the Fool's syndicated newspaper column and has written or co-written a number of Fool books. For more financial and non-financial fare (as well as silly things), follow her on Twitter...

Today's Market

updated 7 hours ago Sponsored by:
DOW 17,492.93 -8.01 -0.05%
S&P 500 2,048.04 -4.28 -0.21%
NASD 4,765.78 -3.78 -0.08%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/23/2016 4:04 PM
IBN $6.69 Up +0.04 +0.60%
ICICI Bank Limited… CAPS Rating: ***
LVLT $51.99 Down -0.29 -0.55%
Level 3 Communicat… CAPS Rating: ***
MU $11.14 Up +0.34 +3.15%
Micron Technology,… CAPS Rating: ***
RRD $15.61 Down -0.03 -0.19%
R.R. Donnelley & S… CAPS Rating: **
SNV $31.09 Down -0.19 -0.61%
Synovus Financial… CAPS Rating: ****