With energy prices down nearly 50 percent from their high this year and many energy stocks down more than that, several hedge fund firms have been bottom-fishing these stocks.
Although it is too early to know about most of the investments, we do know that at least three hedge funds have made big bets on companies related to the energy industry in the past week or two, according to regulatory filings that require investors to disclose when they cross the 5 percent ownership threshold.
For example, Jeffrey Ubben’s ValueAct Capital Partners bought nearly 10 million shares of Baker Hughes for $53 per share, and now owns 5.3 percent of the oilfield services company. In an activist filing, San Francisco-based ValueAct said it plans to have conversations with management and the board of directors of Baker Hughes to discuss ways to boost the stock’s value. The filing came shortly after regulators for a second time blocked Halliburton’s planned acquisition of Baker Hughes for $26 billion.
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New York-based Centerbridge Credit Partners lifted its stake in Civeo Corp. to 5.9 percent. Civeo is a company that relies heavily on a thriving energy market. It provides workforce accommodations, logistics and facility management services to oilfield drilling companies and mining companies. Civeo has been heavily affected by the collapse in oil prices and drilling activity. The stock is currently down about 70 percent from its May high.
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Finally, New York-based D.E. Shaw & Co. recently disclosed that it raised its stake in Dynegy to more than six million shares, or 5 percent. Shares of The Houston-based power generator had fallen by about 66 percent from their high this year through December, when the hedge fund firm disclosed the larger position.
