Energy-focused Hedge Fund company Sound Energy Partners, based in Greenwich, Conn., holds equities with a market value of $1.4 billion in its hedge funds, per its latest filing for the March 2011, quarter. The fund goal is to capture upside market moves and protect capital during down cycles by identifying substantial moves in the commodity relative to expectations and through the use of fundamental research to determine long and short positions. The process depends on the both the macroeconomic outlook of the overall market and the economic environment affecting oil and gas stocks. Its hedge fund, Southport Energy Plus Partners, LP, achieved a 19.91% compound annual return or a cumulative return of 1,115% since fund launch in 1997, and its other Hedge Fund, Southport Energy Plus Offshore Fund, Inc., achieved a 17.83% compound annual return or a cumulative return of 542% since fund launch in 2000.
Sound Energy Partners is an energy-focused hedge fund company with substantial assets of over $1 billion deployed in energy-related equities, and it has achieved market-beating long-term returns. While it only works for the investors in its hedge funds, savvy investors can ride its ‘coattails’ with a knowledge of its holdings and new picks, or better still use the list as a starting point to conduct their own due diligence. Following is a list of the top holdings, as well as top new positions added or increased in the latest quarter ending March 2011:
- Baker Hughes Inc. (BHI), a provider wellbore products and technology services and systems to the global oil and natural gas industry.
- Sandridge Energy Inc. (SD), engaged in the exploration and production of crude oil and natural gas.
- Halliburton Company (HAL), a provider of reservoir completion and drilling services and products worldwide to the upstream oil and gas industry.
- Schlumberger Ltd. (SLB), a provider of technology services, project management and information solutions to petroleum industry worldwide.
- Nexen Inc. (NXY), a Canadian company engaged in the exploration and production of crude oil, natural gas, sulphur and chemicals.
- Alpha Natural Resources (ANR), engaged in the production, sale, and processing of coal from mines and preparation plants in Virgina, West Virginia, Kentucky and Pennsylvania.
- Chesapeake Energy (CHK), engaged in the exploration and production of natural gas and crude oil properties throughout the United States.
- Newfield Exploration Co. (NFX), engaged in the exploration and development of crude oil and natural gas properties in the U.S., Malaysia and China.
- Ensco PLC (ESV), a U.K. Company providing offshore contract drilling services in Europe, Africa, Asia Pacific, Americas, and Australia.
In addition, its holding in International Coal Group (ICO) was recently acquired by rival Arch Coal (ACI).
New or Increased Position
Baker Hughes Inc.
$ 99 million
Sandridge Energy Inc.
$ 95 million
$ 86 million
$ 74 million
Top New or Increased Positions
$ 59 million
Alpha Natural Resources Inc.
$ 56 million
Chesapeake Energy Corp.
$ 61 million
Newfield Exploration Co.
$ 47 million
$ 38 million
International Coal Group
$ 36 million
Credit: Historical fundamentals including operating metrics and stock ownership information were derived using I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are my ‘opinions’ and I may be wrong. I may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to my thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.