Did You See What Billionaire Mason Hawkins Did?

Even if you’re a permabull on natural gas prices, there are less troubled places to invest in this trend. Hawkins himself holds large positions in Chesapeake Energy Corporation (NYSE:CHK), Murphy Oil Corporation (NYSE:MUR) and CONSOL Energy Inc. (NYSE:CNX), which have outperformed Quicksilver stock by a whopping 41 percentage points on average in 2013. Hawkins is going with the winners in oil and gas, and he isn’t a bad man to follow if you’re looking for investments in this space. Each member of this trio also pay a dividend yield of at least 1.3%, while Quicksilver does not offer a yield of any kind.

One new pick

With that being said, the only brand new position Hawkins built during the last 13F filing period was in Mosaic Co (NYSE:MOS). The billionaire holds a little under $50 million in the potash and phosphate producer, which upped its dividend by 15% last quarter. Mosaic now offers a dividend yield of 2.2% at a reasonable forward earnings multiple of 14, and price-to-earnings growth metrics are fairly valued.

With a sturdy balance sheet and moderately strong cash flows, Mosaic represents everything that Quicksilver does not; it’s easy to see why Hawkins has swapped the stocks for one another. Macroeconomic tailwinds in EM crop markets are expected to be a main driver for Mosaic’s nutrients business moving forward, and it’s a distinct possibility that Hawkins and Southeastern will be long-term shareholders.

Disclosure: none

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