Bruce Kovner founded Caxton Associates in 1983, a New York-based trading and investment firm that was formed as the successor to Caxton Associates LP. Caxton is a wholly owned subsidiary of Caxton Europe LLP. Kovner retired in 2011, and his firm returned an average of 21% per year between its inception in 1983 and 2011. With his long-time partner Peter D’Angelo in charge of Caxton’s operations, Kovner concentrated on trading the financial and commodity markets based on his views of macroeconomic conditions. He is featured in Jack Schwager’s book “Market Wizards” as one of the greatest traders of all time. Here’s one of Kovner’s popular trading quotes from the book:
“Risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.”
A lot of individuals enter financial markets with the notion that successful investors know something that the common man does not. However, the truth is that experienced investors understand and accept the inherent uncertainty of market outcomes. So they focus on the interplay of probability and the balance between risk and reward. Kovner also believes in the process of adaptation and adjustment. Here’s what he had to say about dealing with highly uncertain markets:
“First, I have the ability to imagine configurations of the world different from today and really believe it can happen. I can imagine that soybean prices can double or that the dollar can fall to 100 yen. Second, I stay rational and disciplined under pressure.”
Kovner dropped out of Harvard University and floated around a few aimless jobs before finding his love for trading. He also founded the Kovner Foundation, which manages his philanthropic activities. Today, Kovner is chairman of CAM Capital (Caxton Alternative Management Capital), which invests his private assets. Caxton Associates has 13 clients and discretionary assets under management (AUM) of $4.18 billion, according to the firm’s Form ADV dated 15 January 2025. The last reported 13F filing for Q4 2024 included $3.18 billion in managed 13F securities and a top 10 holdings concentration of 63.18%.
That being said, we’re here with a list of billionaire Bruce Kovner’s 10 stock picks with huge upside potential.
Bruce Kovner of Caxton Associates LP
Our Methodology
To compile the list of billionaire Bruce Kovner’s 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Caxton Associates from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks and ranked the stocks in ascending order of their upside potential. We have also added Caxton Associates’ stake in each stock as well as the broader hedge fund sentiment for it.
Note: All data was sourced on May 7.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Billionaire Bruce Kovner’s 10 Stock Picks with Huge Upside Potential
10. GoDaddy Inc. (NYSE:GDDY)
Caxton Associates’ Stake: $4.46 million
Number of Hedge Fund Holders: 52
Average Upside Potential as of May 7: 21.01%
GoDaddy Inc. (NYSE:GDDY) designs and develops cloud-based products in the US and internationally. It operates in two segments: Applications and Commerce (A&C) and Core Platform (Core). The A&C segment offers application products like Websites + Marketing, whereas the Core segment offers domain products like primary registrations and a domain aftermarket platform.
The A&C segment grew its revenue by 17% year-over-year to make $446 million in Q1 2025. This high-margin segment also saw a 14% increase in bookings, which indicated continued adoption of its subscription-based solutions. The A&C segment’s EBITDA margin also expanded by ~2% to reach 44%. These improvements are driven by pricing and bundling initiatives that focus on customer cohorts and integrate third-party products.
Furthermore, GoDaddy Airo, which is the company’s AI-powered tool, is also impacting the A&C segment by improving attach rates, term lengths, and renewals, with Websites + Marketing being a major beneficiary. GoDaddy Inc.’s (NYSE:GDDY) engages customers across the broader capabilities of Airo, with future potential in Agentic AI to further enhance customer value.
Munro Global Growth Small & Mid Cap Fund stated the following regarding GoDaddy Inc. (NYSE:GDDY) in its Q4 2024 investor letter:
“Within the Digital Enterprise Area of Interest (AoI), both Wix and GoDaddy Inc. (NYSE:GDDY) reported strong results for the quarter, with revenue, profit and free cash flows exceeding investors’ expectations. Both web builders’ management teams expressed confidence in their respective continued growth fuelled by new product features powered by AI innovations.”
9. Adobe Inc. (NASDAQ:ADBE)
Caxton Associates’ Stake: $115.73 million
Number of Hedge Fund Holders: 117
Average Upside Potential as of May 7: 25.54%
Adobe Inc. (NASDAQ:ADBE) is a technology company that operates through its Digital Media, Digital Experience, and Publishing & Advertising segments. It offers its solutions directly to enterprise customers through its sales force and local field offices, as well as directly to businesses and consumers. It also licenses its products to end-user customers through app stores and websites.
The company is increasingly monetizing its GenAI innovations. However, the rise of several GenAI models that offer free picture-generation capabilities puts Adobe at risk. Therefore, the company forecasts weaker-than-expected sales and earnings for its FQ2 2025 and full FY2025. Adobe expects its Q2 2025 earnings to average between $4.95 and $5. In FY2024, GenAI contributed $125 million to the total $4.23 billion that the company generated.
On April 25, Morgan Stanley analyst Keith Weiss maintained a Buy rating on Adobe with an unchanged price target of $510 due to the company’s growth potential and current valuation. On April 23, the company also launched an AI-powered fan experience partnership with the National Football League. This will enable the NFL and all clubs to scale personalized fan touchpoints during the 2025 season.
Polen Focus Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:
“We added to several existing positions in the quarter including Adobe Inc. (NASDAQ:ADBE), Workday, Shopify, MSCI, and Paycom Software. We feel Adobe is poised for re-accelerating revenue and earnings growth partially due to the monetization of its Firefly GenAI product embedded in its creative software.”