Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Whiting Petroleum Corp (WLL) Ken Griffin Ups Exposure to Energy; Nathan’s Famous, Inc. (NATH) in Middle of Selling Streak

Page 1 of 2

Warren Lichtenstein‘s Steel Partners has disclosed another cut in its indirect position in Nathan’s Famous, Inc. (NASDAQ:NATH) by 26%, according to a 13D form filed with the SEC. The stake now accounts for 234,914 shares, which represent 5.2% of the company’s outstanding common stock and are deemed to be owned by Steel Partners through one of its holdings, CoSine Communications, Inc. (OTCMKTS:COSN). According to another filing, Ken Griffin’s Citadel Investment Group disclosed holding 12.0 million shares of Whiting Petroleum Corp (NYSE:WLL), which represent 5.9% of the company’s outstanding shares, up from 2.46 million shares held previously.


Griffin founded Citadel Investment Group in 1990. The fund’s quantitative strategy involving advanced financial algorithms has been very successful except during the financial crisis of 2008. Citadel’s flagship fund, Wellington, was up nearly 18% in 2014, while its global equity fund gained about 23% during the same period. The value of the fund’s equity portfolio stood at $82.66 billion at  the end of 2014, with consumer discretionary forming 22% of the value and information technology another 20%.

Steel Partners was co-founded by Lichtenstein around the same time as Citadel. His strategy involves investing in companies with simple to understand business models that have lost the favor of investors and thus have an inbuilt margin of safety considering the levels that they are trading on. Steel’s equity portfolio has a much smaller market value than Citadel, at $758.45 million, and the holdings are concentrated in the Industrial Goods sector, which forms 68% of the portfolio value. The fund is not very diversified, since top ten holdings constituted 97.96% of the value of total holdings and the largest position, represented by Handy & Harman Ltd (NASDAQ:HNH), amasses over 60% of the equity portfolio.

However, even though most popular companies among large funds get the most attention from the media and general public, imitating these stocks is not a good idea for a smaller investor. According to our backtests, a portfolio that consists of 50 most popular stocks among hedge funds underperformed Mr. Market by 7 basis points per month between 1999 and 2012. The edge that can allow a retail investor to gain significant returns by following the activity of hedge funds lies in imitating their small-cap picks. After our backtests showed an average outperformance of 1.0 percentage points per month, we have been sharing some of the most popular small-cap companies among more than 700 hedge funds since August 2012. Over the last 2.5 years, our small-cap strategy beat the market by more than 79 percentage points and posted a gain of 132% (read the details here).

Let’s move on to Citadel’s stake in Whiting Petroleum Corp (NYSE:WLL). The company is fairly popular among over 700 hedge funds that we track. At the end of the fourth quarter 77 funds held around $6.50 billion of the company’s stock as compared to 74 funds with $7.57 billion a quarter earlier. John Paulson’s Paulson & Co upped its stake in Whiting Petroleum Corp (NYSE:WLL) by 44% during the fourth quarter and holds 13.45 million shares valued at $443.90 million, according to its latest 13F filing.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!