More From Stuart McKenzie
AQR Capital Increases Holdings in Apple
In 4Q14, AQR Capital raised its holdings in Apple (AAPL). AAPL constituted 1.46% of the fund’s fourth-quarter portfolio.
Oaktree Capital Sheds Nearly Half Its Holdings in NRG Energy
NRG Energy is a US-based integrated retail electricity and wholesale power-generation firm. The company has 2.5 million residential customers across the US.
Davidson Kempner Initiates Stake in Apple
In February 2015, Apple announced its 1Q15 results and once again beat all analysts’ estimates.
Oil Majors Keep New Projects Worth $200 billion on Ice
Wood Mackenzie research shows that the oil majors have deferred more than 45 significant oil and gas projects since the beginning of the crude oil price collapse last year.
TPG-Axon Capital Management Increases Four Positions in 4Q14
In 4Q14, TPG-Axon Capital Management increased holdings in Huntsman (HUN), Allison Transmission Holdings (ALSN), KAR Auction Services (KAR), and Zynga (ZNGA).
Smithwood Advisers and Hancock Sell Stakes in Energy in 1Q15
Smithwood Advisers was among the hedge funds that sold their stakes in SandRidge Energy in 1Q15. Hancock Holding was one of the firms that sold stakes in Vaalco Energy.
Highlights of Iridian Asset Management’s holdings: 13G filing
In its recent 13G filing, Iridian Asset Management disclosed the sale of two of its major holdings and amendments to 14 of its prevailing positions.
Credit Default Swaps as Insurance against Junk Bond Market Crash
Carl Icahn mentions the use of credit default swaps as a form of protection against credit events. He implies that investors should possess sophisticated knowledge of the fixed income markets to enter that playing field.
Possibly Overbought Refiners Posted Losses Last Week
US refiners have profited from access to cheaper crude oil inputs. But a series of refinery projects being ramped up in Latin America could stall exports.
Monsanto Is Dropped from TPG-Axon’s Portfolio
Monsanto’s net sales for fiscal 2Q15 fell 11% on a year-over-year basis to $5.19 billion.
Visteon Is a New Addition to Highfields Capital’s 4Q14 Portfolio
Visteon (VC) is a major global supplier of electronics, interiors and climate components, modules, and systems to original equipment manufacturers within the automotive industry.
Store Capital Gets Added to Oaktree Capital’s Portfolio
Oaktree Capital initiated a new position in Store Capital (STOR) by purchasing 82,148,645 shares in the company.
Shell Reports Sharp Fall in 2Q15 Profit but Makes Daring Moves
Oil giant Royal Dutch Shell reported a 2Q15 profit of $3.4 billion, a 33% fall from $5.1 billion over 2Q14 using a current cost of supplies basis.
China May Cause Saudi Arabia to Cut Official Prices of Crude Oil
Russia and Saudi Arabia will have to offer more competitive prices in order to maintain market share in China. This implies that the Saudis may cut prices soon for crudes to Asian refiners.
Apple’s Fiscal 2Q15 Reflects Innovation: Apple Pay, Apple Watch
Best Buy to support Apple Pay in 2H15 As discussed in our article Best Buy Will Support Apple Pay in 2H15, during its fiscal 2Q15 earnings call, Apple’s (AAPL) management noted that Best Buy (BBY) will start supporting the Apple Pay service at its retail outlets across the US. Consumers can use Apple Pay at Best Buy […]
Shire Gets Dropped from AQR Capital’s Portfolio
During the fourth quarter of 2014, AQR Capital closed its position in Shire plc (SHPG). The fund sold its entire stake of 816,116 shares in the company.
Hedge Funds Turn Bearish on Crude Oil
As per data from the U.S. Commodity Futures Trading Commission, hedge funds and other asset managers have turned extremely bearish on oil prices.
AQR Capital Initiates Stake in Delphi Automotive
AQR Capital commenced a position in Delphi Automotive (DLPH). DLPH stock represented 0.32% of the fund’s 4Q14 portfolio.
Some Hedge Funds Suffer Massive Losses on Energy Stocks
Hedge fund investors David Einhorn and Carl Icahn placed massive bets on energy, which has proven to be a costly mistake so far. Oil has fallen from more than $100 per barrel in the summer of 2014 to its present ~$40 per barrel levels.
Hedge Funds Benefit from Rally in the Week Ended August 28
Hedge funds boosted their net long position in WTI crude by 6.2% in the week ended August 28 and benefited from the rally toward the end of the week.
Crude Oil Demand Growth Is at a 5-Year High, Yet Recovery Lags
According to the IEA, the drop in oil prices below $50 per barrel is causing a sharp increase in the demand for oil. The IEA carried out a sharp upgrade of the forecast for the growth of oil consumption.
Junk Firms Find the Availability of Cheap Debt Waning
Until now, energy drilling firms were offering bonds for postponing a cash deficit. These firms could witness greatly reduced access to debt capital markets.
US Economy Boosts XLE Subsectors in the Week Ended August 28
Energy ETFs such as the Energy Select Sector SPDR ETF (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) posted weekly gains last week.
Why the Timing of the Oil Price Collapse Couldn’t Be Any Worse
The US energy sector hoped for a rebound in April 2015, when oil rose to $60. Given the recent drop to $40, the mood in the industry seems somber.
ExxonMobil’s 2Q15 Earnings Halved
ExxonMobil (XOM), one of the largest US oil companies, reported 2Q15 earnings last Friday, which were the firm’s lowest earnings in more than five years.
Oil Drillers Posted Marginal Gains and Coal Tanked Last Week
Oil drillers in XLE, represented by firms such as Diamond Offshore Drilling (DO) and Transocean (RIG), posted gains last week.
Money Managers Boost Bullish Exposure to Crude Oil
There was a fall of more than 25% in the net long position held in WTI crude oil for the week ended July 21, 2015.
Are Exploration and Production Firms within the XLE ETF Oversold?
Several exploration and production firms within the Energy Select Sector SPDR Fund (XLE) have RSI values of less than 30, implying that they are possibly oversold.
How Some Small Oil Drillers Are Outperforming Exxon and Chevron
The stock buoyancy of shale oil drillers such as EOG Resources (EOG) suggests investors are betting on an oil and gas rebound.
US Crude Production Dropped in Week Ended July 24, but Why?
According to data from the U.S. Energy Information Administration, US crude production dropped to 9.4 million barrels per day in the week ended July 24.
Storage and Transportation Subsector Rose Marginally Last Week
The storage and transportation subsector within XLE rose by 0.66% during the week. Spectra Energy (SE) and Kinder Morgan (KMI) were the best and worst performers, respectively, in this subsector.
BP Posts 2Q15 Loss: Spoilsports Are Sluggish Demand and Oil Spill
BP has reported a 2Q15 loss of $5.8 billion. The company attributed the losses to charges involved in the Gulf of Mexico oil spill in 2010 and low crude oil prices.
Some Hedge Fund Small-Cap Energy Stocks Have Been Free Falling
According to Bloomberg, there was a 34% fall in small-cap shares over the past three months. The stocks saw a 24% fall since June 26, a series of losses over four straight weeks.
Greenlight Capital Boosts Stake in Consol Energy
Consol Energy posted a net loss of $603 million for 2Q15, which translates to a loss of $2.64 per diluted share. In 2Q14, the company posted a net loss of $25 million.
Energy Sector ETFs Mostly Post Losses in the Week Ended July 24
The coal subsector within the Energy Select Sector SPDR ETF (XLE), represented solely by Consol Energy (CNX), rose by 2.5% last week.
Refiners Edge Toward Upper Bollinger Band, Possibly Overbought
Prices for refiners such as Marathon Petroleum Corp and Tesoro edge more toward the upper Bollinger band. This indicates a possibly overbought state of these stocks.
Why Coal Firms Face a Bleak Future
Not surprisingly, US coal firms have fared poorly during the bull market over the past five years. Moody’s has labeled most publicly traded debt belonging to coal firms as “junk.”
Hedge Fund–Like Mutual Funds Lose Appeal as Investors Pull Out
Hedge fund–like mutual funds invited just over $1 billion until May 2015, as opposed to $39 billion during 2014 and a massive $96 billion during 2013.
Key for Investors: There’s Still Hope for Crude Oil
With dwindling drilling activity, firms might see rising consolidations as the weaker firms lose out on financing options. As a result, US crude oil output could tighten.
Why Bearish Trends Are Expected to Continue in Crude Oil
US oil inventories experienced a rise for the second time in the past couple of months. WTI crude oil is close to its lowest level in the last three months.
Anadarko Petroleum: A Top Energy Company in 1Q15
Anadarko Petroleum (APC) was among the energy companies with the most new filings by hedge funds in 1Q15. Whiting Petroleum had the highest weekly losses.
Crude Oil Refiners Expected to Benefit from Lower Oil Prices
The anticipated addition to global oil supply as an outcome of an amicable resolution to talks with Iran is expected to push oil prices lower, potentially boding well for US refiners.
Hedge Funds Cut Oil Positions for 7th Week in a Row
Following large accumulations of positions in Brent in May, hedge funds have slowly been cutting down on this bet on oil.
Greece Crisis and Iran Talks Weigh Down Oil Prices
Further weakness is expected as the Greece crisis will remain unresolved until a referendum.
Commodity-Focused Hedge Fund Indices Exhibit Mixed Results
The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) was the best performer in the energy sector in terms of year-to-date returns in the week ending June 26.
SandRidge’s Proved Reserves in 1Q15: More Than Meets the Eye
SandRidge’s proved resources for 2014 rose 37% to 516 MMBOE (million barrels of oil equivalent). They were estimated to be $5.5 billion.
Does Performance in Oil Stocks Correlate with Hedging Activity?
The US rig count fell by 40% compared to a year ago, but 9.6 million bpd were still pumped in the United States, the highest since 1970. Hedging by oil companies has helped.
Mixed Economic Results from China Add to Sluggishness in Oil
China is one of the largest consumers of oil in the world. Its economic growth is vital for a boost in the global demand for oil. PMI came in at 49.2 in May, below the critical value of 50.
Oil Woes Pummel Vaalco in 1Q15, but Hope Remains for a Rebound
Vaalco Energy’s (EGY) revenues declined to $18.2 million in 1Q15, from $28.1 million in 1Q14. This translated to a diluted net loss per share of $0.67, down from $0.12 per share in 1Q14.
Rising Dollar and Oversupply in June Set Long-Term Trends in Oil
Crude oil prices are feeling the pressure as the US dollar rises and expectations linger over whether oil production will stay high with OPEC. This is a reason to worry about oversupply.
India’s Foreign Investors Upset about Minimum Alternate Tax Rules
Indian markets have experienced a massive drain of foreign funds since April, mostly fueled by uncertainty over the minimum alternate tax rules.
Carl Icahn Sees Gloomy Short-Term Outlook for the Energy Sector
Icahn mentioned that although the short-term outlook for the energy sector is bad, the sector as a whole could make a comeback in a couple of years.
Carl Icahn’s Warning About the High Yield Bond Market Bubble
In a recent interview with Fox’s Wall Street Week, activist investor Carl Icahn asserted that high yield bonds are becoming more risky than ever.
Halliburton Witnesses a 63% Drop in AQR Capital’s Portfolio
In 4Q14, AQR Capital lowered its holdings in Halliburton (HAL). HAL formed 0.1% of the fund’s fourth-quarter portfolio.
AQR Capital Trims Phillips 66 Position by 28%
In 4Q14, AQR Capital lowered its holdings in Phillips 66 (PSX). The company formed 0.32% of the fund’s fourth-quarter portfolio.
AQR Capital Lowers Holdings in Facebook by 27%
In 4Q14, AQR Capital lowered its holdings in Facebook (FB). FB made up 0.49% of the fund’s fourth-quarter portfolio.
AQR Capital Slashes Holdings in Schlumberger by 84%
In 4Q14, AQR Capital decreased its stake in Schlumberger (SLB). SLB formed 0.03% of the fund’s fourth-quarter portfolio.
AQR Capital Lowers Holdings in Priceline Group by a Massive 82%
In 4Q14, AQR Capital nearly closed its position in the Priceline Group (PCLN). PCLN formed 0.04% of the fund’s fourth-quarter portfolio.
OZ Management Opens New Position in CDK Global
OZ Management commenced a stake in CDK Global Inc. (CDK) by purchasing 4,521,952 shares of the company, representing 0.5% of the fund’s 4Q14 portfolio.
DIRECTV is New Holding in OZ Management’s Portfolio
OZ Management initiated a new stake in DIRECTV (DTV) by purchasing 3,823,963 shares of the company, representing 0.89% of the fund’s 4Q14 portfolio.
Endo International, a New Position for OZ Management
In 4Q14, Oz Management added a new stake in Endo International plc (ENDP) by purchasing 5,221,710 shares, representing 1.01% of the fund’s 4Q14 portfolio.
OZ Management Initiates Stake in Comcast
OZ Management initiated a new position in Comcast (CMCSA) in 4Q14 by purchasing 8,063,097 Comcast shares, representing 1.26% of the fund’s 4Q14 portfolio.
TPG-Axon Closes Its Position in Alibaba Group
Alibaba’s fiscal 3Q15 revenue grew by 40% YoY (year-over-year) to $4.22 billion, but missed consensus estimates of $4.45 billion.
KAR Auction Services Gets Bumped Up Slightly by TPG-Axon
TPX-Axon added to its holdings in KAR Auction Services (KAR) by increasing shares from 4,889,498 to 4,978,837. KAR forms 12.95% of the fund’s 4Q14 portfolio.
Allison Transmission Gets a 79% Boost in TPG-Axon’s 4Q Portfolio
TPG-Axon boosted its holdings in Allison Transmission Holdings (ALSN) in 4Q14, increasing the number of shares a whopping 79%.
AQR Capital Begins a Position in Flextronics International
AQR Capital commenced a position in Flextronics International (FLEX). FLEX represented 0.3% of the fund’s 4Q14 portfolio.
TE Connectivity Is a New Addition to AQR Capital’s Portfolio
According to its 13F filing, AQR Capital initiated a position in TE Connectivity (TEL) in 4Q14. TEL stock represented 0.39% of the fund’s 4Q14 portfolio.
TPG-Axon Capital Management Drops Its Position in Macy’s
TPG-Axon dropped its position in Macy’s (M) by selling its entire stake of 2,003,586 shares in the company.
AQR Capital Commences Stake in LyondellBasell Industries
In 4Q14, AQR Capital initiated a position in LyondellBasell Industries (LYB). The position formed 0.61% of the fund’s total fourth-quarter portfolio.
AQR Capital Trades Key Positions in its 4Q14 Portfolio
The size of the AQR Capital Management’s portfolio was $48.2 billion in 4Q14, up from $36.4 billion in 3Q14.
Highlights of TPG-Axon Management’s Dropped Positions in 4Q14
In 4Q14, TPG-Axon sold its stakes in Macy’s (M), Monsanto (MON), Alibaba Group Holding (BABA), and Vantiv (VNTV).
Highfields Capital Lowers Its Stake in Hertz Global Holdings
Highfields Capital lowered its holdings in Hertz Global Holdings (HTZ) as per its recent 13F filing.
Oaktree Capital Ups Stake in Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing is involved in the distribution, manufacturing, development, and research of products related to integrated circuits.
Oaktree Capital Boosts Holdings in Ally Financial
Ally Financial joined TARP in 2008 as part of an effort to stabilize the US auto industry. The firm went on to become a major provider of auto finance.
Oaktree Capital Bids Farewell to Telefonica Brasil
Telefonica Brasil is the largest telecom company in Brazil and is the subsidiary of Spanish telecom company, Telefonica (TEF).
Highfields Capital Exits Goldman Sachs
Goldman Sachs is a global investment management, securities, and investment banking firm that offers a wide array of financial services to a diversified and substantial client base.
Oaktree Capital Initiates a Stake in Baidu
Baidu generates revenues of about $8 billion. With a 80% market share, the company leads China’s Internet search market.
Highfields Capital Adds Zoetis to Its 4Q14 Portfolio
Zoetis (ZTS) is the animal health business that Pfizer (PFE) spun off in June 2013.
Highfields Capital Initiates a Stake in Tesla Motors
Tesla Motors is involved in the design, development, manufacturing, and sales of electric vehicles and advanced powertrain components for electric vehicles.
Oaktree Capital Trades Key Positions in 4Q14
Oaktree Capital is an investment management firm that focuses on alternative markets. Store Capital (STOR) ranked among the fund’s top holdings in 4Q14.
Highfields Capital Initiates a New Position in Dow Chemical
Dow Chemical Company (DOW) manufactures and supplies specialty chemicals, advanced materials, agrosciences, and plastics.
Highfields Capital Trades Key Positions in Its 4Q14 Portfolio
Highfields Capital Management is an investment management firm that manages private investment funds and caters to pension funds, philanthropic and charitable foundations, and endowments.
Finance Segment of Sotheby’s Sees Major Revenue Growth
The Finance segment of Sotheby’s (BID) provides financing to certain art dealers and collectors.
Earnings for Sotheby’s Drop on Higher Expenses
Fourth-quarter revenues of Sotheby’s rose to $351.2 million, showing a 3.5% increase that beat analyst estimates. However, net income fell to $73.9 million.
Large Sales at Sotheby’s Do Not Necessarily Mean Big Profits
This article will highlight why Sotheby’s has not been succeeding in converting large sales into profit increases.
Davidson Kempner Drops CBS Corporation from Its 4Q14 Portfolio
During the fourth quarter of 2014, CBS Corporation’s revenues increased 3% to $3.7 billion, primarily due to a 4% increase in advertising revenue.
Christie’s Maintains Lead over Sotheby’s
While Sotheby’s was facing Daniel Loeb’s activist pressure, the new management team at Christie’s was implementing a global strategy.
Sotheby’s Partners with eBay to Counter Rival Christie’s
Sotheby’s and the online marketplace eBay (EBAY) announced a partnership in July 2014
Davidson Kempner Trades Key Positions During 4Q14
Davidson Kempner Capital Management’s reportable fourth quarter portfolio totaled $3.1 billion, up from $2.1 billion in 3Q14.
Overview of the Agency Segment of Sotheby’s
This article discusses the Agency segment of Sotheby’s. The Agency segment is the company’s largest business in terms of revenue.
Caxton Associates decreases its position in Morgan Stanley
Caxton Associates drastically lowered its holdings in Morgan Stanley (MS) from 5,858,880 shares in 3Q14 to 553,959 shares in 4Q14.
Caxton adds General Motors to its portfolio
General Motors North America reported 4Q14 revenues of $25.3 billion, a 0.8% rise compared to the corresponding period last year.
A summary of Caxton Associates’ key 4Q14 holdings
Caxton Associates’ portfolio fell from $3.04 billion in 3Q14 to $1.29 billion in 4Q14.
Iridian increases its holdings in Masco by a staggering 394%
Masco delivered top line growth of 4% during 2014 and dividends increased by 20%. Sales increased, and SG&A expenses stayed flat over the previous year.
Iridian sells its holdings in FMC Corp.
FMC obtained global rights for a new herbicide from research companies based in Japan. The herbicide is reportedly effective in controlling broadleaf weeds.
Iridian enters into a new position in Targa Resources
In October 2014, Targa announced its agreement to acquire Atlas Pipeline and Atlas Energy for ~$7.7 billion, expected to close by the end of February 2015.
Iridian initiates new position in Micron Technology
Micron plans to invest ~$4 billion to expand the company’s Singapore fabrication plant. This expansion will add a significant amount of clean room space
Iridian drops its position in Dresser-Rand Group
In its 13G filing, Iridian disclosed that it sold all its holdings in Dresser-Rand Group (DRC). It’s highly likely that Iridian made a profit in this sale.
Iridian slightly raises its holdings in SemGroup Corporation
In its 13G filing, Iridian Asset Management slightly increased its holdings in SemGroup (SEMG). This resulted in a passive stake of 8.2% in the company.
A brief overview of Iridian Asset Management’s 13F filing
Iridian Asset Management witnessed a rise in the size of its portfolio from $9.7 billion in 3Q14 to $10.7 billion in 4Q14.