Hilltop Park Sells Off Apple & Tesla, Loads Up On Energy Stocks

Hilltop Park Associates Buys New Stake in FireEye Inc. (NASDAQ:FEYE)

 – Shares Owned by Hilltop Park Associates LLC (as of June 30): 50,000

 – Value of Hilltop Park Associates LLC’s Holding (as of June 30): $824,000

The hedge fund firm co-founded by Stanley Shopkorn and Douglas Day snapped up a new stake of 50,000 shares of FireEye Inc. (NASDAQ:FEYE) during the second quarter, valued at $824,000 on June 30. The cybersecurity company has lost 31% of its market value since the start of the year, so the firm doubtlessly believes they are getting its shares for a cheap price. Just recently, FireEye announced plans to lay off up to 400 of its 3,400 workers as part of a restructuring plan, citing a slowdown in demand for its online security services. The security technology vendor reported second quarter billings and revenue below both the company’s and analysts’ expectations, which forced the company to cut its outlook. FireEye cut its full-year revenue forecast to a range of $716 million-to-$728 million from the previous forecast of $780 million-to-$810 million. Adam Usdan’s Trellus Management Company has 226,638 shares of FireEye Inc. (NASDAQ:FEYE) among its holdings as of the end of the second quarter.

Hilltop Park Associates Turns Bullish on Hess Corp. (NYSE:HES)

 – Shares Owned by Hilltop Park Associates LLC (as of June 30): 35,000

 – Value of Hilltop Park Associates LLC’s Holding (as of June 30): $2.10 Million

Hilltop Park Associates initiated a 35,000-share position in Hess Corp. (NYSE:HES) during the three months ended June 30, worth $2.10 million at the end of the second quarter. The Hess position was the fourth-largest position in the hedge fund’s portfolio on June 30, constituting 8.8% of its value. The global exploration and production company has seen its market cap increase by 14% since the start of the year. Hess plans to use approximately $2.1 billion on capital and exploratory expenditures for the full 2016 year, down by 48% from 2015. Hess ended the second quarter with $3.1 billion in cash and cash equivalents, while its total liquidity including available committed credit facilities stood at approximately $7.7 billion. The company’s total debt was $6.55 billion at the end of the June quarter. Hess posted total revenue and non-operating income of $1.26 billion for the second quarter, down from $1.94 billion reported for the same period of the prior year. Russell Lucas’ Lucas Capital Management trimmed its stake in Hess Corp. (NYSE:HES) by 35% during the June quarter, to 21,405 shares.

Hilltop Park Associates Acquires Stake in Southwestern Energy Company (NYSE:SWN)

 – Shares Owned by Hilltop Park Associates LLC (as of June 30): 175,000

 – Value of Hilltop Park Associates LLC’s Holding (as of June 30): $2.20 Million

Southwestern Energy Company (NYSE:SWN) was the largest addition to the New York-based asset manager’s portfolio during the June quarter. Hilltop Park Associates snatched up a stake of 175,000 shares during the April-to-June period, which was valued at $2.20 million on June 30. The independent energy company engaged in natural gas and oil exploration, development and production has seen the value of its stock skyrocket by 91% since early-January. In late-July, analysts at Barclays upped their price target on Southwestern Energy to $14 from $8 and reiterated their ‘Underweight’ rating on the stock, citing higher mid-cycle cash flow estimates due to higher production forecasts. Additionally, Barclays’ analysts noted that the company has strengthened its balance sheet and liquidity. The successful implementation of the company’s debt reduction strategy will enable Southwestern Energy to increase its activity in the current quarter and for the remainder of the year. Joe DiMenna’s Zweig-DiMenna Associates owns nearly 342,000 shares of Southwestern Energy Company (NYSE:SWN) as of June 30.

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