Charles Davidson, the manager of Wexford Capital, sees the energy sector as a great investment, having three energy companies as his fund’s top positions. Wexford Capital’s equity portfolio has an estimated market value of $1.34 billion, slightly up from $1.31 billion at the end of the first quarter of 2014. Energy companies account for approximately 66% of the fund’s portfolio, while Materials sector comes second with 7.9%. In this article we will take a look at Davidson’s top 3 stock picks, which include a newcomer – Sanchez Energy Corp (NYSE:SN).
Diamondback Energy Inc (NASDAQ:FANG) continues to be Wexford Capital’s biggest investment, although Davidson has chosen to reduce its stake by 13% during the second quarter. As reported in the latest 13F filing, Wexford holds 8.63 million shares valued at $766 million. Still, the investment in Diamondback Energy Inc (NASDAQ:FANG) accounts for more than half of the fund’s equity portfolio. Ken Griffin is still optimistic about the prospects of this company, having increased his fund’s stake by 75% during the same period of time. Griffin’s Citadel Investment Group reportedly holds 1.02 million shares worth in excess of $91 million.
Wexford’s stake in Rhino Resource Partners, L.P. (NYSE:RNO) has been slightly increased, by 1%, during the second quarter. As a result, the fund now holds 6.63 million shares of the coal company, which are valued at $93.3 million. So far this year, the stock has trended higher and has advanced 17% to a current price of $13.6 per share. Jon Bauer of Contrarian Capital is also a fan of Rhino Resource Partners, L.P. (NYSE:RNO) and has boosted his fund’s investment in the stock by 27% during the quarter. In its latest 13F filing, Contrarian Capital has disclosed ownership of approximately 414,000 shares worth $5.82 million.
A new entrant that shot up straight into the top 3 holdings of Wexford Capital is Sanchez Energy Corp (NYSE:SN), an independent exploration and production company. During the second quarter, Charles Davidson has built a position that amasses about 797,700 shares, worth just under $30 million. Crispin Odey, on the other hand, has chosen to reduce his fund’s stake in the company by 7% during the same period of time. His fund, Odey Asset Management Group, reportedly holds 2.25 million Sanchez Energy Corp (NYSE:SN) shares, which are valued at $84.7 million