Citigroup Is Bearish on These Offshore Drillers, but What do Hedge Funds Think?

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Our data shows that around 730 elite funds that we track are collectively bearish on Seadrill Ltd (NYSE:SDRL). A total of 18 funds reported stakes worth $95.49 million in aggregate (representing 1.90% of the float) as of the end of June, versus 18 funds and $121.1 million respectively a quarter earlier. Currently, 16% of the stock’s float is short. Among the funds from our database, Jim Simons‘ Renaissance Technologies owns 2.74 million shares of Seadrill.

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On the other hand, the funds are mixed on ENSCO PLC (NYSE:ESV). Although the number of funds decreased to 22 from 26 between April and June, the total value of their holdings in the stock increased to $405.87 million (representing 7.80% of the float) from $336.88 million. Joe Huber‘s Huber Capital Management holds some 4.43 million shares, which is the largest stake among the investors we track. Around 11% of the float is short.

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Hedge funds are more optimistic towards Ocean Rig UDW Inc (NASDAQ:ORIG) as they amassed over 25% of the company at the end of June. A total of 16 funds held long positions with an aggregate value of $207.88 million at the end of the second quarter, up from $189.05 million held by 13 funds at the end of March. James Dondero‘s Highland Capital Management owns 15 million shares.

Disclosure: none

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