T. Boone Pickens Holdings Down Nearly 20% This Quarter

The holdings in T. Boone Pickens' hedge fund at the end of Q2 aren't doing so well this quarter.  Based on the 13-F released by BP Capital yesterday, the fund's holdings are collectively down 19.7% since the start of July.  (This doesn't reflect the fund's cash position, short positions, or changes in the holdings since the end of the 2nd quarter.)  As shown, 26 out of 27 positions are down this quarter, with SandRidge Energy (SD), BPZ Resources (BZP), Foster Wheeler (FWLT) and Denbury Resources (DNR) down the most.  The one position that is up this quarter is Clean Energy Fuels (CLNE), which is also the fund's smallest position.  Interestingly, the fund added to all but two positions from Q1 to Q2, and took new positions in Chesapeake Energy (CHK), Devon Energy (DVN), Tenaris (TS), EOG Resources (EOG) and BZP.

Mr. Pickens has been front and center in the news recently for his Pickens Plan to end the United States' dependency on foreign oil by developing alternative fuel sources.  Based on the performance of Pickens' holdings this quarter, BP Capital investors might want him to just be quiet.

Comments

[TheRealBull:]

Within a larger bull market in commodities, one can expect corrections to be dramatic. On the other side of that coin, when they take off, expect it to be breath taking.

That's just the way it is. Get use to it.

2008 Aug 15 07:37 PM

[randyj:]

fool, you've lost a ton if you've been an oil/commodity bull these past few weeks. the downside has been more breathtaking than the upside, it's taken 3 weeks to erase 6 months of gains. go blow your bubbles elsewhere sheep.

2008 Aug 15 10:27 PM

[fahrender:]

are you saying that oil and gas won't come back? dream on ........

2008 Aug 16 12:43 AM

[shark1001:]

So what’s the point of this article, that one can lose money in a short period of time? Well you’re right. What is his result for YTD? Last year? Last five years? What will it be five years from now? Anyone can take a losing period and make some negative point out of it. Better yet, compare his results to yours. We would just love to see this.
Stop posting all your nonsense information; you’re losing the little creditability you had. I guess when you have nothing else to do, you submit nonsense to Seeking Alfa, and they take anything.

2008 Aug 16 07:58 AM

[kharrin49:]

To insinuate that Pickens talking about his energy plan played any part in the downside of these stocks is just plane stupid...And it appears that your readers come away with a similiar belief...

2008 Aug 16 08:34 AM

[Bo864:]

Thank you for this article. I've been waiting for a correction in energy to pick up a stock or two.

2008 Aug 16 08:34 AM

[kharrin49:]

To insinuate that Pickens capital investment fund was hurt by Pickens hawking his energy plan is just stupid...

2008 Aug 16 08:35 AM

[Paul Killinger:]

Interesting list. VERY heavy on LONG energy.

Since I live in the middle of the oil patch myself, I am quite familiar with many of these names. All but a couple (Shaw, for one) are very strong companies.

I like McMoran alot. They've been discovering large new gas finds in old shallow fields on the LA coast two miles down in 10 feet of water. Inexpensive exploration and production with a major upside.

Much like Warren, ol' Boone will do just fine over time, thank you.

2008 Aug 16 09:35 AM

[PTAUAG:]

Thank you for the list of T Boone's holdings. I am quite happy to purchase at a discount energy companies that have been vetted by T Boone Pickens.

2008 Aug 16 10:21 AM

[CLH:]

Commodities go up (sometimes in a bubble) but long term they remain the same except for inflation. There is no shortage of any commodity. When this correction is finished, the value of all commodities will be the same as 2000 or 1940. Buy them and ride it down.

2008 Aug 16 10:50 AM

[fran:]

thanks for the post. i'm more interested in content than individual up/down--either for BP Capital or individual stocks. it's a worthy quarterly perspective. please continue.

2008 Aug 16 11:57 AM

[polar40:]

Thank you, now we can choose. At the increasing rate the world is using energy, it will be back up soon.

2008 Aug 16 12:02 PM

[msmhqueen814:]

"What goes up, must go down". don't worry, energy will be back up BIG TIME! i agree with t.boone pickens. i am going to add to my positions to have a lower cost basis, when oil amd nat. gas goes back up!! i also like his windpower and am in FPL group, which he recommended.

2008 Aug 16 02:20 PM

[User 244491:]

Before writing on Mr.T Boone Pickers,who shits more value after lunch than what you will ever make in the Oil/Gas trading.
With your 50$ suites bought in Wal Mart and cheap after shave go and teach pikers like you,not the real life investors like me and other readers who make their living trading futures/options.
You must better understand the section on Hedge Funds,it is read by guys who have Patek Philippe watches and wear everyday Paul&Shark shirts.
If you are such an experts o Mr.T Boone who's name sounds much better than your governments bankrupt T-Bonds,go and sell short his holdings or go short Natural Gas.
And we,the hedge fund beasts and those with a sense of humor and intelligence,will show you the hell.
Go short the staff kids but before buy real suites as I can't see some nice shaven faces who look like McDonalds cleaners.

2008 Aug 16 03:05 PM

[TheRealBull:]

The only fools in this commodities market are those who try to buy and sell in and out of it. If you can't ride the bull you will get trampled. Go long, hang on tight and prepare for the ride of your life.

2008 Aug 16 03:32 PM

[Freefalling:]

Be neither bear nor bull, but try to figure out the real picture. The commodities bubble was a result of the lack of any other plausible investment venue, and too much fiat cash floating around looking for someplace to make money,putting at risk the entire global financial infrastructure. Feels good to know that speculating in food commodities caused many more thousands to starve to death, doesn't it? As long as you make some money to live a more oppulent lifestyle, nothing else really matters, right?

2008 Aug 16 05:49 PM

[TheRealBull:]

Speculation has nothing to do with food commodities price increases. If you did your homework it would be plain to see that there are real supply issues in our inventory created by global inflation (aka currency debasement) and the new bio-fuels movement (aka turning ones food crops into fuel for your car). Think of it this way. If ones purchasing power is diminished due to central banks creating money our of thin air, do you:

A. Keep your money in a depreciating currency and watch your purchasing power erode?

B. Buy tangleable goods such as food staples knowing tomorrow they are going to cost you more?

Bottom line, until there is fiscal discipline on a Federal level (we in America are driving the global inflation rate being our currency is currently the World's currency), expect food prices to continue moving higher along with all other commodities. Inflation (the expansion of the money supply via bank bailouts, excessive lending, and a society that is based on borrowing and not savings) is a self perpetuating beast that left uncheck will destroy a currency completely.

2008 Aug 16 07:36 PM

[inthemoney:]

> Commodities go up (sometimes in a bubble) but long term they remain the same except for inflation. There is no shortage of any commodity. When this correction is finished, the value of all commodities will be the same as 2000 or 1940. Buy them and ride it down.
----------------------...

That might be. But it doesn't mean energy companies cannot appreciate faster than commodities. Even if they appreciate at the rate of inflation, it is better than holding money in a bank account with 1% interst. Citibank pays me 1% interest on my cash, it is a disgrace.

2008 Aug 17 12:33 AM

[Lea Cabrerra:]

Lets not forget that Pickens was down 29% in the previous quarter when he went short energy (early I might add).

After that quarter he went on Bloomberg and proclaimed he was wrong about being short energy but had righted the ship and was long because oil was going to $150.

So, If indeed he is down another 19.7% that would mean $1 fell to 71 cents after prematurely being short and then to to 57 cents after going long. Thats a 43 percent decline over that last couple of quarters. Thats a couple of billion in Boone's world. The majority of the OSU athletic departments money is in Boone's fund. It will be interesting to see how that affect the OSU Football Facility Construction Projects taking place right now.

WOW!! 43% hurts. Every dog has its day (good and bad).

2008 Aug 17 01:02 AM

[lefty:]

pickens down 20%? So am I, but holding.

2008 Aug 17 06:32 AM

[Barry Robbins:]

It is too bad he doesn't have wind energy holdings, like Vestas (VWSYF.PK). Vestas, the world's #1 maker of wind turbines, continues to make gains. There are few companies out there planning massive expansions like Vestas, including the world's biggest wind tower factory in Colorado, and the largest wind turbine blades in Isle of Wight, just to name a couple.

2008 Aug 17 09:22 AM

[pacito:]

Chesapeake is going to plummet. Simple reason for that: They are on the verge of experiencing Peak production. Just have a look at the numbers of Texas Railroad Commission.
Statewide monthly gas well gas production for Chesapeake Operating:
Oct 07 32.9 Nov 07 31.5 Dec 07 31.1 Jan 08 29.9 Feb 08 27.4 Mar 08 27.8 Apr 08 25.7 May 08 25.1
So, production plummeted by 24% within 8 months. Within these 8 months NG prices surged from 6.17 (Q3 2007) to 11.34 (Q2 2008).
Also: According to Texas RRC, output from the Barnett Shale peaked in Dec 07 with 3.07 BCF and declined to 2.61 BCF (May 08) so far.
Shale NG is hot air, just declining too much.

2008 Aug 19 06:23 AM

[applesauce:]

BP woulk not be paying CHK 1,9 bil for a 25% share of declining fields.
They did their due diligence and CHK is simply using OPM to find more areage for future developement. Boone has been off on his timing but long term supply demand equation says higher prices. Wait until Putin shuts off Europeon gas this winter or when Israel drops a cookie on Iran.

2008 Sep 03 11:55 AM