In this article, we discuss 5 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates. If you want to read our detailed analysis of the hedge fund’s performance and investment strategy, as well as the risk/reward and methodology of this list, go directly to read 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
5. Cisco Systems, Inc. (NASDAQ:CSCO)
Stake Value in Caxton Associates LP’S 13F Portfolio: $1.53 million
Percentage of Caxton Associates LP’S 13F Portfolio: 0.14%
Number of Hedge Funds: 63
Cisco Systems, Inc. (NASDAQ:CSCO) is a global telecommunications corporation that creates and markets networking gear, software, and other products. During Q2 2022, Caxton Associates LP boosted its stake in the company by 288%, purchasing nearly 35,986 shares. The fund’s total stake in the company amounted to roughly $1.53 million, which represented 0.14% of its 13F portfolio. As a result, Cisco Systems, Inc. (NASDAQ:CSCO) is ranked #5 in our list of 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
For Q2 2022, Cisco Systems, Inc. (NASDAQ:CSCO) reported revenue of $13.01 billion and an adjusted EPS of $0.83 and in August 2022, the company declared a quarterly dividend of $0.38 per share.
Analysts like the stock. In August, Jackson Chiang, an analyst with KGI Securities, raised Cisco Systems, Inc. (NASDAQ:CSCO) from Neutral to Outperform with a $53 price target.
Many hedge funds like the stock too. Out of the 895 funds in our database, 63 owned the stock at the end of Q2. Among them, Citadel Investment Group is a leading shareholder in Cisco Systems, Inc. (NASDAQ:CSCO) with over 7.8 million shares worth $334.29 million.
4. AT&T Inc. (NYSE:T)
Stake Value in Caxton Associates LP’S 13F Portfolio: $1.55 million
Percentage of Caxton Associates LP’S 13F Portfolio: 0.15%
Number of Hedge Funds: 55
AT&T Inc. (NYSE:T) is a multinational telecommunications company with scale. Although shares are near multi-year lows and the company cut its dividend this year, AT&T Inc. (NYSE:T) is investing in the infrastructure of its business that could generate higher returns. If the company is successful with its transition, AT&T Inc. (NYSE:T) could potentially grow earnings.
In the fourth quarter of 2013, Caxton Associates made its initial investment in AT&T Inc. (NYSE:T), purchasing shares worth roughly $1.5 million. As of Q2 2022, the hedge fund held shares worth more than $1.5 million in the company, an 11% rise from the prior quarter. The company is ranked#4 in our list of 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
At the end of Q2 2022, 55 hedge funds in our database also held shares. Among them, Citadel Investment Group is a leading hedge fun dholder in AT&T Inc. (NYSE:T) with shares worth $255.76 million.
3. Citigroup Inc. (NYSE:C)
Stake Value in Caxton Associates LP’S 13F Portfolio: $2.09 million
Percentage of Caxton Associates LP’S 13F Portfolio: 0.20%
Number of Hedge Funds: 82
Based in New York, Citigroup Inc. (NYSE:C) offers diverse banking, financial services, and wealth management. During Q2 2022, Caxton Associates LP increased its stake in the bank by 52% to roughly $2.09 million, which represented 0.20% of its 13F portfolio. As a result, Citigroup Inc. (NYSE:C) is ranked#3 in our list of 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
For Q2 2022, the company reported $19.64 billion in revenue and an adjusted EPS of $2.30, beating estimates by $1.28 billion and $0.63. Although Citigroup Inc. (NYSE:C)’s valuation could decline if the market declines further, the stock is nevertheless considered as a blue chip given its scale and earnings power.
82 hedge funds tracked by Insider Monkey reported having bullish bets on Citigroup Inc. (NYSE:C) as of the end of the second quarter of 2022, with an aggregate stake value of $7.44 billion. Berkshire Hathaway, with a position worth $2.53 billion, was one of the largest hedge fund holders of Citigroup Inc. (NYSE:C).
2. CME Group Inc. (NASDAQ:CME)
Stake Value in Caxton Associates LP’S 13F Portfolio: $12.82 million
Percentage of Caxton Associates LP’S 13F Portfolio: 1.19%
Number of Hedge Funds: 56
CME Group Inc. (NASDAQ:CME) is the biggest financial derivatives exchange in the world. As of the end of Q2 2022, Caxton Associates owned $12.82 million worth of shares, accounting for 1.19% of the fund’s 13F portfolio. As a result, CME Group Inc. (NASDAQ:CME) is ranked #2 in our list of 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
Earlier in the month, analyst Gautam Sawant of Credit Suisse maintained a Neutral rating on the shares of CME Group Inc. (NASDAQ:CME) while lowering the firm’s price target from $216 to $210. Recently, the company also announced the launch of options on ether futures.
As per Insider Monkey’s Q2 2022 database, 56 hedge funds owned stakes in CME Group Inc. (NASDAQ:CME). These stakes accounted for a consolidated value of over $2.74 billion. With a position worth over $858.72 million, GuardCap Asset Management held the largest position in the company in Q2.
1. Pfizer Inc. (NYSE:PFE)
Stake Value in Caxton Associates LP’S 13F Portfolio: $151.38 million
Percentage of Caxton Associates LP’S 13F Portfolio: 14.7%
Number of Hedge Funds: 70
Pfizer Inc. (NYSE:PFE) is a multinational pharmaceutical company that has been one of the leaders in terms of making vaccines for COVID-19. During Q2 2022, Caxton Associates LP decreased its stake in the company by 1% to $151.38 million, which represented 14.7% of its 13F portfolio. Despite the decrease, Pfizer Inc. (NYSE:PFE) is ranked#1 in our list of 5 and 10 Blue Chip Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates.
Recently Pfizer and BioNTech received a positive CHMP opinion for their bivalent COVID-19 vaccine, which could increase demand if approved.
As per Insider Monkey’s Q2 2022 database, 70 hedge funds owned stakes in Pfizer Inc. (NYSE:PFE). These stakes held a consolidated value of over $2.80 billion. With a position worth $533.91 million, AQR Capital Management was the largest hedge fund holder in the company in Q2.
You can also take a look at 10 Best Stocks to Buy Now According to Billionaire Bill Gates and Billionaire Dan Loeb’s Top 10 Stock Picks.
