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Highlights of Magnetar Capital’s 4Q14 Position Decreases

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Magnetar Capital

Established in 2005 by Alec Litowitz and Ross Laser, Magnetar Capital has grown by more than five times in terms of assets under management since its foundation. The hedge fund currently manages assets in excess of $12 billion and seeks to generate active returns through deploying its global event-driven, fixed income, and energy strategies across multiple asset classes.

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Top holdings

The table below summarizes the fund’s top holdings at the end of the fourth quarter.

Magnetar’s portfolio remained highly concentrated in energy stocks, which represented over 60% of its 4Q14 US long portfolio value. Investors seeking to gain exposure to the energy sector can consider an ETF such as the Energy Select SPDR Fund (XLE), whose portfolio is comprised of 44 energy and utility stocks that best represent the energy sector of the S&P 500. Other alternatives to XLE include the iShares US Energy ETF (IYE) and the Vanguard Energy ETF (VDE), which attempt to effectively track the performance of US energy stocks.

4Q14 position decreases

Magnetar’s US long portfolio value stood at $5.43 billion at the end of 4Q14, though the fund had increased in value by 10% compared to the previous quarter. Litowitz’s hedge fund exited positions in Baker Hughes (BHI), Denbury Resources (DNR), Metlife (MET), and Western Refining (WNR). As outlined in the table below, the fund also lowered its exposure to American Airlines Group (AAL) and Shire (SHP) in the fourth quarter.

 

In this series, we’ll take a closer look at these two positions in a bit more detail. To start with, we’ll look at the position change in American Airlines Group (AAL).

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