Top 4 Stock Picks of Marc Lasry’s Avenue Capital

3. Gulfport Energy Corporation (NYSE:GPOR)

Marc Lasry’s Stake Value: $10.78 million

Percentage of Marc Lasry’s 13F Portfolio: 4.98%

Number of Hedge Fund Holders: 15

Marc Lasry added Gulfport Energy Corporation (NYSE:GPOR) to his 13F portfolio during the second quarter of this year. The company fell into chapter 11 bankruptcy in 2020 but improving commodity prices and operational strategies helped it to emerge from bankruptcy in May this year. Reuters recently reported that Gulfport Energy is exploring strategic options including a possible sale.

Greenlight Capital, an investment management firm, mentioned a few stocks including Gulfport Energy Corporation in the second quarter investor letter. Here is what Greenlight Capital stated: 

“ESG investing is inflationary, as green energy is simply more expensive than hydrocarbons. Hydrocarbon energy companies are starved for capital and are being told to change their ways. The result is less exploration and drilling. Even with benchmark oil prices surging over the last year, companies are loath to drill more. Normally, the cure for high prices is high prices. With ESG in the proverbial driver’s seat, we might still need much higher prices in order to increase investment to meet demand.

There is almost nothing less popular than thermal coal. From 2011 to 2020, U.S. coal production declined by 51%. U.S. demand has fallen as we’ve shifted to alternative sources of electricity. As unpopular as coal is though, it still makes up about 20% of U.S. electricity generation. Globally, coal demand is growing modestly as China and India add power generation capacity faster than the West is reducing it. Even so, reduced oil and gas drilling has caused natural gas prices to advance and coal prices are following. Seaborne thermal coal prices are up 140% year-over-year and at the highest levels since 2011, and Northern Appalachia thermal coal prices are catching up, rising 23% in the last month alone.

We also own Gulfport Energy (GPOR), an Appalachian natural gas driller that recently emerged from bankruptcy and is poised to benefit from higher natural gas prices. Currently, there are no analyst estimates for GPOR.”