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.
AQR Capital Nearly Halves its Holdings in EOG Resources
In 4Q14, AQR Capital lowered the number of shares held in EOG Resources (EOG). EOG accounted for 0.22% 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.
Apple Delivers Strong Fiscal 2Q15 Financial Results
Apple achieved robust results despite the currency headwinds playing a major role. Apple noted that the strong dollar impacted its revenue growth by 6% in fiscal 2Q15.
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.
Mobile TeleSystems Nearly Dropped by Oaktree Capital
Mobile TeleSystems is the leading retail network in Russia with the highest penetration of smartphones in the market.
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.
The Top Holdings of Major India-Focused ETFs
The major constituents held by India-focused ETFs show a mixed bag. While ICICI Bank saw a total return of -8.74%, HDFC Bank’s gain stood at 13.22% since the start of 2015.
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.
NetApp Dropped from Oaktree Capital’s Portfolio
NetApp offers data management and storage systems, software, and services. NetApp increased its stock repurchase program by an additional $2.5 billion.
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.
Revenue for Principal Segment of Sotheby’s More Than Doubles
The Principal segment of Sotheby’s more than doubled its revenue to $70 million in 2014 from $30.6 million in 2013.
Oaktree Capital Enhances its Position in Dynegy by 28%
Dynegy offers wholesale power and ancillary services to municipalities, cooperatives, utilities, and other energy firms in five US states.
Oil Companies See Massive Recent Insider Purchases
Diamond Offshore Drilling, Exxon Mobil, and Occidental Petroleum saw insider purchases worth ~$4.9 million, $400,000, and $870,000, respectively. These firms constitute ~20% of the Energy Select Sector SPDR ETF (XLE).
Icahn’s 4Q14, Historical Holdings Show Robust Confidence in Apple
Carl Icahn added Apple to his portfolio in September 2013, purchasing ~27 million shares. Since March 2014, the fund has maintained its holdings at ~53 million shares.
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.
Why Carl Icahn Upped Stakes in Struggling Chesapeake Energy
Oil and gas drilling firm Chesapeake Energy (CHK) is cutting its common stock dividend in order to maintain capital expenditure in the wake of a sharp nosedive in energy prices.
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.
Refiner Tesoro Posts Gains despite Weak Oil Prices
Refiners such as Tesoro and Marathon Petroleum (MPC) have access to inexpensive crude. Since most US exports of oil are banned, a large portion of oil from shale regions is landlocked.
Comstock Suffered a Major Fall in Its Share Price
Comstock Resources (CRK) has relatively lower total producing costs. However, the firm doesn’t have a strong balance sheet position.
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.
The Market Put a Premium on Large Caps with Strong Margin Growth
Large-cap energy stocks with above-average margin growth mostly outperformed peers last week.
A Breakdown of XLE’s Market Capitalization by Subsector
The Energy Select Sector SPDR Fund (XLE) is primarily composed of large-cap stocks.
Price-to-Earnings Ratio Trends and Trades in XLE Stocks
The rise in price-to-earnings ratios is indicative of investor preference towards storage during contango oil and gas markets.
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.
Och–Ziff Lowers Exposure to Energy Firms by ~$314 Million
Och–Ziff Capital Management either reduced or sold its stakes held in energy companies, amounting to at least $314 million.
Transocean Beats 1Q15 Forecast but Is Still Plagued by Oil Woes
Transocean (RIG) posted strong 1Q15 financial results with revenues of $2.04 billion, beating the forecast of $1.91 billion. EPS was $1.10, much higher than the estimated $0.60.
Investors in Oil ETFs Rush to Sell Holdings in April and May
Market weakness is expected amid heavy selling by oil ETFs. The general outflows associated with oil ETFs signal a negative investor sentiment.
May 19 Was a Bad Day for the Worst Performing Energy Companies
ETFs decreased or closed their positions in energy companies rather than increase or initiate a new stake last week. This signals a weak outlook for energy companies.
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.
OZ Management’s New Positions in 4Q14
In 4Q14, OZ Management initiated new positions in Comcast (CMCSA), Yahoo! (YHOO), Endo International plc (ENDP), DIRECTV (DTV), and CDK Global Inc. (CDK).
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.
TPG-Axon Ups Its Position in Zynga by 36%
TPG-Axon raised its position in Zynga (ZNGA) by increasing shares from 16,303,598 in 3Q14 to 22,124,546 in 4Q14. This represents an increase of 36%.
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).
TPG-Axon Opens a New Position in Axalta Coating
TPG-Axon Management initiated a new position in Axalta Coating Systems Ltd (AXTA) by purchasing 2,409,701 shares of the company, representing 4.7% of the fund’s 4Q14 portfolio.
What Positions Did TPG-Axon Management Add in 4Q14?
In 4Q14, TPG-Axon Management initiated stakes in Air Lease Corporation (AL), Axalta Coatings Systems Ltd. (AXTA), IMS Health Holdings Inc. (IMS), and Ubiquiti Networks Inc. (UBNT).
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).
Oaktree Capital Lets Go of EMC
EMC, via innovative services and products, seeks to accelerate the adoption of cloud computing. In 2014, EMC returned $3.9 billion to its shareholders.
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.