Hedge Funds’ Latest Moves: Diamondback Energy Inc (FANG), Walker & Dunlop, Inc. (WD), Town Sports International Holdings, Inc. (CLUB)

Let’s move on to the other two filings, beginning with Charles Davidson’s Wexford Capital, which continues to systematically sell off its activist stake in Diamondback Energy Inc (NASDAQ:FANG). The fund’s latest Form 4 filing with the Securities and Exchange Commission shows that they disposed of just under 242,700 shares at an average price of $71.93, bringing its remaining ownership down to 928,000 shares.

The sale was the latest in a long-running series of sales dating back to early 2013 that have seen the fund’s once-massive stake of 16.41 million shares reduced to less than a million. The sales have also drastically reworked Wexford’s portfolio, with the position that has at times constituted more than 50% of the value of its equity portfolio now being vastly reduced, and it will be interesting to see where Wexford reallocates that capital. Earlier this year it revealed a new position in Hemisphere Media Group, Inc. (NASDAQ:HMTV), and opened positions on several energy companies in the fourth quarter.

Diamondback has proven to be an exceptional investment for Wexford, gaining over 135% since the middle of 2015, and in fact even being higher at times during 2014, when Wexford was also selling shares. Billionaire Israel Englander of Millennium Management would be the largest shareholder of Diamondback now based on end of 2014 figures, as he owned 2.17 million shares at that time.

Lastly, we have Michael Novogratz’ Fortress Investment Group, which has done Wexford one better by selling its entire 8.25 million share stake in Walker & Dunlop, Inc. (NYSE:WD), as a secondary share offering for that company, which it will not receive any proceeds from. Fortress has been a major shareholder of the commercial real estate finance company since late 2012, and owned 10.55 million shares from the first half of 2013 until the fourth quarter of last year. During that time, fund ownership in Walker & Dunlop has increased around it, as shares have remained mostly flat over the past 21 months.

Chuck Royce’s Royce & Associates was the second largest shareholder among funds we track with ownership of just under 700,300 shares at the end of 2014, while several other funds opened new positions during the fourth quarter.

Disclosure: None