Given the latest challenges on the petroleum market in 2014, a particular focus will be given to the next three largest positions in Knott’s fund. As we can notice from the 13F sector allocation Dorset Management has significant exposure to the energy sector, reflecting an allocation of 61% in companies operating in energy at the end of 2014. Its stake in Anadarko Petroleum Corporation (NYSE:APC) amasses 294,600 shares, valued at $24.31 million and equal to 5.72% of the hedge fund’s value. Anadarko Petroleum Corporation’s stock increased by 0.71% during the first three months of 2015, the modest return being affected by posted revenues of $3.18 billion, down by 5% on the year and a net loss of $0.78 per share, versus a loss of $1.53 per share a year earlier. However, the company is expected to recover due to a recent oil discovery that has been made at the Yeti prospect, where the petroleum company has a 37.5% stake in Statoil ASA (ADR) (NYSE:STO)’s Yeti operation. Furthermore, Anadarko Petroleum Corporation (NYSE:APC) remains the favorite energy stock among billionaire fund managers with 11 billionaires reporting long positions with an aggregate value of $1.63 billion. Ken Griffin’s Citadel Investment Group is one of the largest shareholders in Anadarko Petroleum Corporation as it reported holding 4.92 million shares, followed by another significant investor of the company Paul Singer‘s Elliot Management, which owns 4.62 million shares.
The stock of Cimarex Energy Co (NYSE:XEC) had the highest growth among the petroleum companies that are analyzed in this article, delivering a return of 8.74% in the first quarter of 2015. 150,000 shares of the company were held by Dorset Management, comprising a market value of $15.9 million, the stake representing 3.74% of its equity portfolio. Cimarex Energy Co (NYSE:XEC) has received a “BBB-” credit rating from Morningtar, which implies that the company has a moderate default risk. The two largest stockholders of Cimarex Energy Co (NASDAQ:FSRV) in our database as of the end of 2014 are Charles De Vaulx’s International Value Advisers with 3.34 million shares, and Ric Dillon’s Diamond Hill Capital with 3.11 million shares.
Another energy stock in Dorset’s equity portfolio is Schlumberger Limited. (NYSE:SLB), which lost 1.73% during the first quarter, but gained some ground in the last couple of weeks. Dorset reported ownership of 210,000 shares of Schlumberger, valued at $17.94 million, according to its latest 13F filing. The company reported its financial results for the first quarter on Thursday, with revenue declining by 8.8% on the year to $10.25 billion and profit down to $0.76 per share from $1.21 per share a year earlier. Moreover, Schlumberger Limited. (NYSE:SLB) announced plans to lay-off 11,000 workers, in addition to 9,000 that have been cut earlier this year. Ken Fisher, Ken Griffin, and Jim Simons are three of five billionaires that reported long positions in the company during the previous round of 13F filings.
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