5 Stocks to Buy According to Cheyne Capital

2. Chesapeake Energy Corporation (NASDAQ:CHK)

Cheyne Capital’s Stake Value: $5,617,000
Percentage of Cheyne Capital’s 13F Portfolio: 4.74%
Number of Hedge Fund Holders: 59

Chesapeake Energy Corporation (NASDAQ:CHK) is a privately held exploration and production firm. Benchmark analyst Subash Chandra commenced coverage of Chesapeake Energy Corporation (NASDAQ:CHK) on August 1, assigning the stock a ‘Buy’ rating and a $137 price target. According to the analyst, Chesapeake has bought $5 billion worth of assets in the previous six months, improving the company’s capital intensity and allowing it to maintain greater production levels with proportionately less money.

In the second quarter of 2022, Cheyne Capital held about 69,265 shares of Chesapeake Energy Corporation (NASDAQ:CHK), worth $5.62 million, representing 4.74% of the hedge fund’s total 13F securities. The hedge fund increased its stake in Chesapeake Energy Corporation (NASDAQ:CHK) by 30% in Q2 2022. Cheyne Capital started building its position in the company in the first quarter of 2022.

According to Insider Monkey’s Q1 data, 59 hedge funds were bullish on Chesapeake Energy Corporation (NASDAQ:CHK), compared to 50 funds in the earlier quarter. Howard Marks’ Oaktree Capital Management held the leading stake in Chesapeake Energy Corporation (NASDAQ:CHK), with roughly 10.50 million shares worth $851.64 million.

Here is what ClearBridge Investments said about Chesapeake Energy Corporation (NASDAQ:CHK) in its Q1 2022 investor letter:

“In the early days of the invasion, we made two measured changes to the portfolio based on longer-term fallout we anticipate from Russia’s invasion of Ukraine. First, we initiated small positions in U.S. natural gas producers Chesapeake (NYSE:CHK).

Given its superior environmental profile compared to other fossil fuels, we have long favored natural gas in our energy holdings. Combustion of natural gas releases 50% less CO2 than coal, 25% less CO2 than gasoline and dramatically less particulate and pollution, per the U.S. Energy Information Administration. With the advances in shale production this century, the U.S. has become a natural gas powerhouse with some of the lowest-cost and largest reserves in the world. But because natural gas is difficult to ship across the ocean (it must be liquefied, which requires expensive infrastructure on both ends of the voyage), America’s gas bounty has ironically proved a burden for U.S. producers…. (Click here to read full text).”