McDermott International (MDR) Shares Spike After Landing Long-Term Contract With Saudi Aramco

What does the smart money think about McDermott International (NYSE:MDR)?

Let’s start with the hedge funds having major stakes in McDermott International (NYSE:MDR) at the end of the second quarter. Youlia Miteva’s Proxima Capital Management was the largest shareholder of the company, having ownership of 4.52 million shares with a market value of $24.14 million. Mount Kellett Capital Management, led by Mark McGoldrick and Jason Maynard, came in at number two, holding 4.43 million shares valued at $23.66 million. Millennium Management and Citadel Investment Group were among the other hedge funds holding substantial positions in the company.

Orbis Investment Management, led by William B. Gray, was among the hedge funds increasing their positions in McDermott International (NYSE:MDR) substantially during the second quarter. The investment firm increased its stake by 374% to 473,274 shares valued at $2.53 million.

Despite a large contract from Saudi Aramco, the company hasn’t released the amount of the contract, which leaves it open to speculation. We would recommend investors hold  steady and initiate new positions only after receiving more information about the contract and its expected impact on the company.

Disclosure: None