Och–Ziff Lowers Exposure to Energy Firms by ~$314 Million



Och–Ziff Capital massively reduces exposure to oil companies

According to a recent 13F filing made by Och–Ziff Capital Management, the fund has lowered its exposure to energy companies. Och–Ziff either reduced or sold its stakes held in these companies, amounting to at least $314 million.

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Top 1Q15 sales made by Och–Ziff Capital in energy firms

As shown in the above table, Och–Ziff sold its stake in several oil companies, including exploration, production, integrated companies, and service and transportation companies in the oil sector. The fund sold its holdings in Southwestern Energy Company (SWN), Halliburton (HAL), Chevron (CVX), and Golar LNG (GLNG).

Investors who wish to gain exposure to oil and gas exploration, as well as production companies such as SWN, could consider investing in the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). SWN has an exposure of 0.85% in XOP. SWN is also part of the iShares US Oil & Gas Exploration & Production ETF (IEO), with a stock weight of 1.65%.

Hedge funds continue to close positions in energy stocks

According to aggregate 13F data, while some hedge funds continue to close down their position in energy companies, others engage in purchasing oil stock, probably with hopes of a long-term payoff. For instance, while Och–Ziff sold its stake in Halliburton (HAL), the aggregate number of shares held in HAL has increased by 0.86% during 1Q15 to 656 million shares.

On a similar note, while the likes of Norges Bank and Och–Ziff Capital Management have sold their stakes in Southwestern Energy (SWN), the overall number of aggregate shares of SWN held by hedge funds increased by 15.4% in 1Q15.

In the next part of this series, we will analyze why the energy sector poses a relatively higher level of overall risk to investors.


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