Recent institutional activity in LGCY
Fir Tree Partners and Baines Creek Capital were the biggest buyers of Legacy Reserves (LGCY) in 4Q17. Fir Tree and Baines added 3.8 million and 3.4 million positions, respectively, in the stock during the quarter.
The increase in Fir Tree Partners’ position can be attributed to common unit issuance in relation to the repurchase of senior notes.
Among the top institutional investors in Legacy Reserves, 7.2 million positions were added, which could indicate a bullish sentiment in LGCY. RR Advisors and Prescott Group Capital Management were the biggest sellers. They sold 0.85 million and 0.78 million shares, respectively.
Why are institutional investors bullish on LGCY?
Institutional investors’ bullishness toward LGCY can be attributed to the following factors:
- strength in crude oil prices
- increase in LGCY’s total production
- improvement in LGCY’s financial position
Top five holders
Baines Creek Capital, Fidelity Management & Research Company, Fir Tree Partners, Credit Suisse Securities, and California Public Employees’ Retirement System are among the top five institutional holders in LGCY. Baines Creek Capital continues to be the largest institutional holder in LGCY with an addition of 3.4 million positions. It currently holds 15.1% in the partnership.