We recently published a list of Billionaire Bruce Kovner’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where ChampionX Corporation (NASDAQ:CHX) stands against other stock picks with huge upside potential.
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%.
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).
A person wearing protective gear and a respirator, inspecting a corroded pipe in a refinery.
ChampionX Corporation (NASDAQ:CHX)
Caxton Associates’ Stake: $8.19 million
Number of Hedge Fund Holders: 48
Average Upside Potential as of May 7: 64.30%
ChampionX Corporation (NASDAQ:CHX) provides chemistry solutions, artificial lift systems, and engineered equipment and technologies to oil & gas companies worldwide. It operates in four segments: Production Chemical Technologies, Production & Automation Technologies, Drilling Technologies, and Reservoir Chemical Technologies.
ChampionX’s Production Chemical Technologies segment generated $523.4 million in Q1 2025 revenue, which was a sequential drop of 8% due to typical seasonal lower international sales volumes. Despite this dip, the segment achieved an operating profit of $82.2 million and an adjusted EBITDA of $109.1 million. The company has already strengthened its arsenal of oil & gas equipment by acquiring RMSpumptools Limited.
With the acquisition, ChampionX Corporation (NASDAQ:CHX) gains access to advanced mechanical and electrical solutions for artificial lift applications. This acquisition should open up growth opportunities for the company in the international markets of the Middle East and Latin America. The company has also started a new team focused on unconventional water applications in North America and is re-entering the US Land market with its H2S scavenger program.
Overall, CHX ranks 1st on our list of billionaire Bruce Kovner’s stock picks with huge upside potential. While we acknowledge the potential of CHX as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CHX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
