Caxton Associates Curbs Kraft Heinz, Sells Goodyear

GuruFocus.com

- By Tiziano Frateschi

Caxton Associates (Trades, Portfolio) manages a portfolio of 182 stocks with a total value of $2,956 million. The firm's largest third-quarter trades are as follows:


The firm reduced its stake in The Kraft Heinz Co. (KHC) by 38.87%. The trade had an impact of -3.44% on the portfolio.

The company produces consumer packaged goods. It manufactures and markets food and beverage products, including cheese, meats, refreshment beverages, packaged dinners, snack nuts and other grocery products. During the third quarter, the company reported an increase of 2.4% for generally accepted accounting principles (GAAP) net sales and 254% for GAAP operating income.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The return on equity (ROE) of 4.82% and return on assets (ROA) of 2.73% are underperforming 60% of the companies in the Global Packaged Foods industry. Financial strength has a rating of 5 out of 10. The cash to debt ratio of 0.12 is below the industry median of 0.64.

The largest shareholder among the gurus is Warren Buffett (Trades, Portfolio) with 26.75% of outstanding shares, followed by David Rolfe (Trades, Portfolio) with 0.3%, John Griffin (Trades, Portfolio) with 0.19%, Caxton Associates (Trades, Portfolio) with 0.19%, George Soros (Trades, Portfolio) with 0.02%, Steven Cohen (Trades, Portfolio) with 0.02%, Mario Gabelli (Trades, Portfolio) with 0.01% and Joel Greenblatt (Trades, Portfolio) with 0.01%.

Caxton acquired 6,684,500 shares of Chesapeake Energy Corp. (CHK). The trade had an impact of 1.42% on the portfolio.

Chesapeake is a natural gas and oil exploration and production company. It explores, develops and acquires properties for the production of natural gas and crude oil from underground reservoirs. It also provides marketing and midstream services. During the third quarter, its revenues declined by 33% year over year due to a decrease in the average realized commodity prices received for production.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of -474.88% and ROA of -37.58% are underperforming 98% of the companies in the Global Oil & Gas E&P industry.

The largest shareholder among the gurus is Mason Hawkins (Trades, Portfolio) with 10.39% of outstanding shares, followed by John Griffin (Trades, Portfolio) with 1.42%, Caxton Associates (Trades, Portfolio) with 0.75%, Steven Cohen (Trades, Portfolio) with 0.59%, Arnold Schneider (Trades, Portfolio) with 0.58%, Charles Brandes (Trades, Portfolio) with 0.22%, Richard Snow (Trades, Portfolio) with 0.06% and Ray Dalio (Trades, Portfolio) with 0.04%.

The firm sold out of Goodyear Tire & Rubber Co (GT). The trade had an impact of -1.34% on the portfolio.

Goodyear develops, manufactures, markets and distributes tires for various applications. It also manufactures and markets rubber-related chemicals.

GuruFocus gives the stock a profitability and growth rating of 5 out of 10. The ROE of 7.75% and ROA of 1.91% are underperforming 67% of the companies in the Global Rubber & Plastics industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.16 is below the industry median of 0.70.

The largest shareholder of the company among the gurus is Diamond Hill Capital (Trades, Portfolio) with 2.35% of outstanding shares, followed by Hotchkis & Wiley with 1.39%, Pioneer Investments (Trades, Portfolio) with 0.57%, David Tepper (Trades, Portfolio) with 0.33%, T Boone Pickens (Trades, Portfolio) with 0.1%, John Buckingham (Trades, Portfolio) with 0.08%, Jeremy Grantham (Trades, Portfolio) with 0.07% and Scott Black (Trades, Portfolio) with 0.03%.

Caxton reduced its position in Barrick Gold Corp. (ABX) by 27.12%. The transactoin an impact of -1.21% on the portfolio.

The company is involved in the exploration and development of mines. It also holds interests in oil and gas properties in Canada. Third quarter revenues were $2.30 billion, compared to $2.32 billion in the same quarter of 2015. Operating cash flow was $951 million, compared to $1.26 billion.

GuruFocus gives the stock a profitability and growth rating of 6 out of 10. The ROE of -31.95% and ROA of -9.20% outperform 50% of the companies in the Global Gold industry. Financial strength has a rating of 4 out of 10. The cash-debt ratio of 0.31 is below the industry median of 16.04.

The largest shareholder among the gurus is First Eagle Investment (Trades, Portfolio) with 3% of outstanding shares, followed by Jim Simons (Trades, Portfolio) with 0.97%, George Soros (Trades, Portfolio) 0.24%, Stanley Druckenmiller (Trades, Portfolio) with 0.16%, John Hussman (Trades, Portfolio) with 0.08%, Steven Cohen (Trades, Portfolio) with 0.03% and John Rogers (Trades, Portfolio) with 0.03%.

The fim reduced its stake in Raytheon Co. (RTN) by 81.34%. The trade had an impact of -1.15% on the portfolio.

The company offers air and missile defense, radar solutions, naval combat and ship electronic systems, and command, control and communications systems. Third quarter net sales grew 4% year over year and earnings per share from continuing operations was $1.79, compared to $1.47 in the third quarter of a year before.

GuruFocus gives the stock a profitability and growth rating of 8 out of 10. The ROE of 21.86% and ROA of 7.67% are outperforming 82% of the companies in the Global Aerospace & Defense industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.53 is above the industry median of 0.38

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus with 0.98% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.92%, NWQ Managers (Trades, Portfolio) with 0.18%, First Eagle Investment (Trades, Portfolio) with 0.17%, Steven Cohen (Trades, Portfolio) with 0.13% and Jim Simons (Trades, Portfolio) with 0.02%.

Caxton sold out of Whirlpool Corp. (WHR). The trade had an impact of -1.1% on the portfolio.

The company is a manufacturer and marketer of home appliances. It produces and sells washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, air purifiers and other household appliances.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 18.32% and ROA of 4.51% are outperforming 56% of the companies in the Global Home Furnishings & Fixtures industry. Financial strength has a rating of 5 out of 10. The cash-debt ratio of 0.19 is below the industry median of 1.15.

The largest shareholder of the company among the gurus is Barrow, Hanley, Mewhinney & Strauss with 2.78% of outstanding shares, followed by Diamond Hill Capital (Trades, Portfolio) with 2.41%, Bill Nygren (Trades, Portfolio) with 2.3%, David Tepper (Trades, Portfolio) with 1.54%, Ken Heebner (Trades, Portfolio) with 0.47%, Pioneer Investments (Trades, Portfolio) with 0.32% and Joel Greenblatt (Trades, Portfolio) with 0.17%.

Caxton sold out of General Dynamics Corp. (GD). The transaction had an impact of -1.04% on the portfolio.

General Dynamics is an aerospace and defense company. It offers products and services in business aviation, combat vehicles, weapons systems and munitions, shipbuilding, and communication and information technology systems. During the third quarter, operating earnings grew 3.4% and operating margins had an improvement of 90 basis points. The company reported an 8.8% increase for diluted earnings per share.

GuruFocus gives the stock a profitability and growth rating of 7 out of 10. The ROE of 26.87% and ROA of 9.07% are outperforming 87% of the companies in the Global Aerospace & Defense industry. Financial strength has a rating of 6 out of 10. The cash-debt ratio of 0.59 is above the industry median of 0.38.

Barrow, Hanley, Mewhinney & Strauss is the largest shareholder of the company among the gurus with 2.15% of outstanding shares, followed by First Eagle Investment (Trades, Portfolio) with 0.58%, Daniel Loeb (Trades, Portfolio) with 0.44%, Tom Gayner (Trades, Portfolio) with 0.06%, Joel Greenblatt (Trades, Portfolio) with 0.03%, Stanley Druckenmiller (Trades, Portfolio) with 0.03%, Manning & Napier Advisors Inc. with 0.01% and Jeremy Grantham (Trades, Portfolio) with 0.01%.

Disclosure: I do not own any shares of any stocks mentioned in this article.

This article first appeared on GuruFocus.