Billionaire Ken Griffin Likes Halcon for Oil and Gas

Page 1 of 2

CITADEL INVESTMENT GROUPCitadel Investment Group, a large hedge fund managed by billionaire Ken Griffin, has acquired 11.2 million shares of oil and gas company Halcon Resources Corp (NYSE:HK). According to a 13G filed with the SEC, Citadel now owns 5.2% of the shares outstanding. Citadel’s 13F filing for the third quarter of 2012 showed that the fund had owned 8.9 million shares at the end of September, nearly triple what it had owned three months earlier, and clearly the fund has continued buying shares over the last two months. Find more of Griffin’s stock picks from the end of September.

We covered a large insider purchase at Halcon in mid September (read more about the $700,000 insider buy). In addition, our database of insider trading filings shows buying by eight different insiders in November. Since insider purchases tend to be bullish signs, and stocks bought by a consensus of insiders are particularly likely to outperform the market (learn more about studies on insider trading), this is useful to note. The stock is up 9% since the most recent insider buy, however, and it’s possible that the outperformance has run its course.

In the third quarter of 2012, Halcon had $73 million in revenue compared to $24 million in the same period in 2011. About 90% of revenue came from sales of oil, with nearly all of the rest coming from sales of natural gas and natural gas liquids. Oil production more than tripled from a year earlier, while natural gas and NGLs were roughly double the previous levels. Production costs were up as well, and Halcon also recorded higher SGA expenses. As a result, the company experienced an operating loss of about $5 million during the quarter, while at its lower production levels of a year ago it had earned a small amount of operating profits.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!