Caxton Associates Betting on Gold and Consumer Staples Amid Major Portfolio Overhaul

Monster Addition to Monster Stake

Having almost halved its stake in Monster Beverage Corporation (NASDAQ:MNST) during the previous quarter, Caxton’s management made a U-turn and decided to boost their position in the stock heading into the second quarter. The fund now holds 991,000 Monster shares valued at $132 million at the end of March, with the position having been enlarged by 55% during the first quarter. Monster Beverage Corporation (NASDAQ:MNST) had a stellar first quarter, signaling to the market that its on the right track back to solid growth. Its latest quarterly report showed an 8.5% year-over-year increase in sales to $680 million, above analysts’ consensus of $665 million. Sales in overseas markets rose by an impressive 32%, despite the effects of the stronger dollar. The company also posted a profit of $0.80 per share, surpassing expectations of $0.74 per share. The results propelled the stock higher and pushed it into green territory for the year. Neal C. Bradsher‘s Broadwood Capital is also betting big on Monster Beverage Corporation (NASDAQ:MNST), which accounts for 44% of its portfolio. According to its latest 13F filing, the fund holds 1.6 million shares valued at $213 million.

Gold’s Time Has Come

With gold prices back in an uptrend, Mr. Law and his team chose to place a big bet on Barrick Gold Corporation (USA) (NYSE:ABX). Caxton Associates’ new position in the stock amounts to 11.5 million shares valued at $157 million. The fund’s latest 13F filing also indicates ownership of 15.2 million call options underlying shares of the stock. After a two-year slump, gold prices started to rise in the beginning of 2016, pushing Barrick Gold up as well. The stock ended yesterday’s trading session at $17.62 per share, up by 130% for the year. The uncertainty about the pace of the Fed’s rate hikes is still keeping gold traders nervous and indirectly putting pressure on the stock price of mining companies, including Barrick Gold Corporation (USA) (NYSE:ABX). Traders got a breather for now, as the latest statement issued by the Fed stated that a rate hike is dependent on improved economic indicators. George Soros‘ family office is also betting big on gold again after having liquidated its positions in gold mining companies and ETFs during the third quarter of 2015. Soros Fund Management recently reported a fresh investment in Barrick Gold Corporation (USA) (NYSE:ABX) that amounts to 19.4 million shares worth roughly $263 million.

Kraft Heinz Ranks as New Top Bet

Kraft Heinz Co (NASDAQ:KHC) is Caxton Associates’ new top bet, with the fund having acquired 3.19 million shares of the company during the first quarter. According to its latest 13F filing, the value of the position was $251 million on March 31. Despite a 3% year-over-year drop in revenue, the company still managed to beat Wall Street’s expectations for the first quarter of fiscal year 2016 ended April 3. Kraft Heinz Co (NASDAQ:KHC) posted a profit of $0.73 per share on the back of $6.57 billion in revenue, topping analysts estimates of $6.47 billion in revenue and earnings of $0.62 per share. The stock is currently trading at a massive P/E multiple of 152 however, significantly higher than the industry average of 41 according to Yahoo! Finance. One of the architects of the Kraft/Heinz merger, Warren Buffett, still holds a sizable position in the new company. Valued at $25.6 billion, Berkshire Hathaway’s stake in Kraft Heinz Co (NASDAQ:KHC) amounts to 325 million shares.

Disclosure: None