Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Micron Technology, Inc. (MU), Level 3 Communications, Inc. (LVLT): Here’s What This Annual 20% Gainer Has Been Buying

Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today, let’s look at Caxton Associates, founded in 1983 by Bruce Kovner (who stepped down in 2011). The investment company is known for relatively few years with negative returns, and also for average annual gains of about 20% since its inception several decades ago. That’s a powerful record.

Caxton is also known for charging clients dearly for the privilege of going along for the ride. In an industry known for routinely charging 2% of assets annually while also taking 20% of profits, Caxton had long charged 3% and 30%, though that was reduced some last year.

The company’s reportable stock portfolio totaled $1.6 billion in value as of March 31, 2013.

Micron Technology, Inc. (NASDAQ:MU)

Interesting developments
So what does Caxton Associates’ latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are Assured Guaranty Ltd. (NYSE:AGO) and the SPDR Select Financial Sector ETF. Other new holdings of interest include Micron Technology, Inc. (NASDAQ:MU) and Level 3 Communications, Inc. (NYSE:LVLT). The struggling PC market has hurt Micron Technology, Inc. (NASDAQ:MU), but bulls are hopeful that growth in tablets and smartphones will boost demand for memory chips. Micron’s purchase of Japanese manufacturer Elpida has some investors quite optimistic, as it boosts Micron Technology, Inc. (NASDAQ:MU)’s capacity and its relationship with Apple Inc. (NASDAQ:AAPL). Micron Technology, Inc. (NASDAQ:MU) has been losing market share, though, and some worry about the commoditization of memory and Micron’s debt levels. Several analysts increased their price targets for the stock recently.

Level 3 Communications, Inc. (NYSE:LVLT), long burdened with substantial debt, is expanding its services around the world, for example boosting its video broadcasting in Latin America. Many investors are steering clear, however, not liking its hefty debt, net losses, and negative free cash flow. (Its recent losses were smaller than analysts had expected, though.)

Among holdings in which Caxton Associates increased its stake was RR Donnelley & Sons Co (NASDAQ:RRD). Commercial printer Donnelley provides labels, packaging, and more to the private and public sector. It prints many thousands of forms for the SEC, too, and bought Edgar Online. Bears worry about its steep debt load, though the company is free-cash-flow positive. Some also worry about a possible reduction of its dividend, which recently yielded nearly 8%. To succeed, the company needs to do more digital business. To that end, it recently sealed an eBook deal with Harlequin.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.