5 Best Stocks to Buy Under $30 According to Bruce Kovner’s Caxton Associates

2. Equity Commonwealth (NYSE:EQC)

Caxton Associates’ Stake Value: $2,833,000

Stock Price as of October 4: $26

Number of Hedge Fund Holders: 23

Kovner’s Caxton Associates owns 108,135 shares in Equity Commonwealth (NYSE:EQC), worth $2.83 million. As of the end of the second quarter of 2021, 23 hedge funds in Insider Monkey’s database held stakes amounting to $159 million, down from 21 in the previous quarter with stakes worth over $183.1 million. 

On October 4, BofA analyst James Feldman downgraded Equity Commonwealth (NYSE:EQC) from Neutral to Underperform because the stock is a “mismatch” when we compare it to the current “yield and growth” oriented market dynamic. The price target remained unchanged at $28. 

Nomadic Value Partners discussed the plausibility of Equity Commonwealth (NYSE:EQC)’s potential merger with Monmouth Real Estate Investment Corporation (NYSE:MNR) in their Q2 2021 investor letter. Here is what they said: 

“In early May, Equity Commonwealth (EQC) announced a transaction to buy Monmouth REIT (MNR) in an all-stock transaction. We later sold our shares in late June. MNR is an industrial warehouse REIT focused on Grade A tenants, with 55% of their portfolio leased to FedEx. The strategy sold to the street is that EQC can leverage MNR’s portfolio to deploy their $3Bn of unencumbered cash into other industrial properties – building a unique, high-grade industrial REIT from scratch. I liked the idea originally, but after talking to folks in the industrial RE segment and modeling the likely financial outcomes, I could not see this opportunity achieving our return hurdle. Fortunately, we bought EQC at a price conservative to the core office assets they already hold and were able to sell the shares with a very small gain over a six-month hold.”