5 Stocks Canyon Capital Advisors Can’t Live Without

Below we take a look at 5 Stocks Canyon Capital Advisors Can’t Live Without. For our methodology and a more comprehensive list of Canyon Capital’s highest conviction stock picks, please see 10 Stocks Canyon Capital Advisors Can’t Live Without.

5. Noble Corporation (NYSE:NE)

Value of Canyon Capital Advisors’ 13F Position: $125 million

Number of Hedge Fund Shareholders: 31

Canyon Capital Advisors was one of several hedge funds that took a new position in Noble Corporation (NYSE:NE) during the first quarter, buying 3.95 million shares of the offshore driller. There was a 29% jump in the number of hedge funds long NE during the quarter, with John Smith Clark’s Southpoint Capital Advisors and Crispin Odey’s Odey Asset Management among the other funds to build new stakes in the small-cap company.

Noble Corporation (NYSE:NE) is another offshore driller that Canyon Capital has taken a keen interest in. The company has been active since emerging from bankruptcy protection last year, first by acquiring Pacific Drilling, which had also just emerged from bankruptcy protection, and then later by merging with Maersk Drilling. The latter move received shareholder approval in May but is still pending approval from British authorities.

It’s been reported that the deal will likely be approved should the companies execute several proposed remedies, including the selling off several rigs. In late June, Noble Corporation (NYSE:NE) took a big step  forward on that front by agreeing to sell five jackup rigs to Shelf Drilling for $375 million. BTIG upgraded Noble Corp. to ‘Buy’ from ‘Neutral’  in early June, with a $60 price target. The firm expects the merger to close in the near-term.