Charles Davidson’s and Joseph Jacobs’ Wexford Capital’s Return, AUM, and Holdings

The most valuable position Wexford Capital held at the end of December 2018, was in Mammoth Energy Services Inc (NASDAQ:TUSK),  an integrated oilfield service company, that provides a plethora of services related to the energy industry, such as directional drilling, pressure pumping, and infrastructure, to name a few. The fund’s position in the company included 21.99 million shares outstanding, which were worth $395.35 million, accounting for 33.72% of its entire portfolio. Mammoth Energy has a market cap of $943.01 million, and it is trading at a price-to-earnings ratio of 9.75. Over the last 12 months, the company’s stock lost 36.95%, and on March 8th it had a closing price of $20.75. In its last financial report for the Q3 of 2018,  the company disclosed record net income of $69.5 million, or $1.54 per diluted share, compared to net loss of $801 million, and a loss per diluted share of $0.02 in the corresponding quarter of 2017. Its total revenue for the Q3 2018, amounted to $384.0 million, down by 28% from one quarter earlier, and up by 157% from the same quarter in 2017. At the beginning of January, Imperial Capital restated its Outperform rating on the stock with a price target of $40, while Tudor Pickering upgraded its rating on it to ‘Buy’ from ‘Hold’

Wexford Capital initiated the largest new position during the fourth quarter of 2018 in Colfax Corp (NYSE:CFX), which is a Fortune 500 company known for its innovations in science and technology. It was formed as a spinoff of an American conglomerate, Danaher Corporation. The fund purchased 1.24 million Colfax’ shares, which carried a value of $25.89 million, amassing 2.2% of its equity portfolio. For the three months ended December 31, 2018, Colfax disclosed net income from continuing operations of $43 million or $0.36 per diluted share, versus a loss of $1.53 per share in the same quarter of 2017. Its adjusted net income amounted to $81 million or $0.69 per share, compared to EPS of $0.45 for the same period in 2017. The company also reported its full-year 2018 net income which was of $169 million, or $1.40 per diluted share, versus a loss of $0.59 per share in 2017.

Recently, Colfax announced that it has completed the acquisition of a medical device company known for a plethora of products for rehabilitation and physical therapy, DJO Global. Colfax has a market cap of 3.25 billion, and it is trading at a price-to-earnings ratio of 23.78. Year-to-date, the company’s stock gained 25%, and on March 8th it had a closing price of $26.17. On February 22nd, Raymond James repeated its ‘Buy’ rating on the stock with a price target of $25.00, and about a week earlier Gabelli restated its ‘Buy’ rating as well.

Among the biggest positions the fund obtained during Q4 2018 were also those in Trinity Industries Inc (NYSE:TRN), whose 942,406 shares with a value of $19.4 million the fund purchased, and AerCap Holdings N.V. (NYSE:AER) in which the fund established $17.74 million worth a position, on the account of 447,921 shares.

Out of 90 stocks the fund said goodbye to during the fourth quarter of 2018, the biggest positions held in Barrick Gold Corp (NYSE:GOLD), Energy Transfer LP Unit (NYSE:ET), and Evergy Inc (NYSE:EVRG). Wexford Capital sold out 2.52 million Barrick Gold’s shares with a value of $27.89 million, 817,668 Energy Transfer’s shares, which carried a value of $18.2 million, and 330,777 shares of Evergy, which were valued at $18.17 million.

Disclosure: None

This article was originally published at Insider Monkey.