T. Boone Pickens' Stocks Struggle

Judging by the performance of T. Boone Pickens' stock holdings at the end of the second quarter, it hasn't been a good couple of months.  While there's no telling yet what Pickens has done in his BP Capital fund this quarter, if he has simply done nothing, the fund's equity holdings would be down 32.26% since the end of June.  That's what happens when you run an energy fund and oil loses a third of its value in two months. 

As shown, SD is down the most at 62%, followed by BZP, FWLT and KBR (all down more than 50% in the second half of the year).  Only one of BP Capital's holdings at the end of the second quarter is up this quarter, and it was the fund's smallest position (CLNE).  As we wrote earlier, who knows what Pickens has done with his holdings this quarter, but it's hard to imagine that he's not suffering some big losses.

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Comments

[redbaron:]

Ah Yes, and how would that compare to those only holding financial stocks in a fund, or only china stocks in a fund, in the same time period.

Why pick only on T. Boone? There are others who are far worse off, and some of them are the financial geniuses who created much of this mess.

2008 Sep 11 02:50 PM

[valueinvest...:]

Do you often spend time during your day worrying about billionaires?

2008 Sep 11 03:11 PM

[maelstrom:]

I beg to differ ..makes me feel not quite as inept when I see Boone is in worse straights than I. We also own 5 of the same stocks..probably slightly different quantities. I think these two guys consistently put out succinct unbiased information, unlike most of the shills hyping a self serving agenda.

2008 Sep 11 04:13 PM

[phdinsuntan...:]

long on the yen, short the rest

2008 Sep 11 04:17 PM

[Socialism c...:]

Funny how the big oil tycoon has been preaching nat gas and clean alternatives lately...all over the airwaves...yet his portfolio is still saturated with big oil. KBR...i wouldn't touch housing for another year yet. But I guess billionaires can afford to "get in early".

2008 Sep 11 04:21 PM

[cjct:]

KBR is a major infrastructure player (spun off from Halliburton) you are thinking of KB Homes which is completely different......sometim... the knowledge level on the site is sorely lacking...

2008 Sep 11 04:48 PM

[mkreisel:]

Some ignorant types just crack me up. Maybe Socialism is really needed to give them a better education.

But the fact that KBR drops 50% during such a short time period is still amazin. It just shows that if everyone is on the same side of a trade, you gotta take the opposite position regardless how great the underlying fundamental story sounds.

2008 Sep 11 05:52 PM

[sf123:]

another boom and bust

2008 Sep 11 09:45 PM

[10Q Detective:]

I guess when you're worth $3 - $4 billion, owning just 60% of "little" CLNE, worth about $480 million to Pickens, is a small holding.

2008 Sep 11 10:34 PM

[jahowle:]

Where is the information on the hedges he had in place?

2008 Sep 11 11:40 PM

[NOWHEREMAN:]

KBR and ABB, Infrastructure+.

Both are sorely need throughout the world, both of their prices suffer even as earnings and backlogs increase.

Hedge Funds, Mutual Funds, sector ETFs, all are sacrificing the good and therefore highly liquid along with the inept. Average down.

2008 Sep 12 08:32 AM

[Paul Killinger:]

Gee, poor Boone! How much do you figure his portfolio is now UP over the past 5 years? Where do you think it will be 5 years from today?

2008 Sep 12 11:41 AM

[Market Folly:]

You can see the exact portfolio changes as reflected in BP Capital's most recent 13F SEC filing here: www.marketfolly.com/20...

2008 Sep 12 12:47 PM

[WEBISKING:]

Pickens is worth over abillion so does it really matter?The key for him is he will wean Americans off foreign oil. Giving the money to chevron and exxon help subsidize the 40% of americans who p[ay NO FEDERAL INCOME TAX

2008 Sep 12 07:52 PM

[Steven Ward:]

I was not aware one whit that T. Boone held so many engineering and oil service stocks in his portfolio.

2008 Sep 13 11:32 AM

[mixter:]

Poor 'ole T. Boon "Pickpocket"! I bought some of his Messa L.P. Preferred on the advice of a wealthy man who was knowledgeable as to the investments of Rice University's endowment fund. Due to poor performance, the shares took a reverse split, so I ended up with one share for every eight shares purchased. The $15 per share original stock price ended up netting $34 for every $1,500 invested. Of course, 'ole T still drew a big salary, big bonus's, and flew around in a corporate jet all the while, until he was kicked out of his job by the larger investors.

I am sure he is a "good old boy" (especially if you are and Okla. State University supporter). However, the bottom line is that he can, and does, make mistakes just like the rest of us. Where he is different is, he just likes to take bigger risks.

I also recall feeling sorry for some people who lost their jobs due to his corporate raiding ventures in the 70's.

2008 Sep 15 12:11 PM