Dmitry Balyasny’s Walter Energy Bet Shows Some Don’t Think Coal Is Dead Yet

Balyasny, Walter Energy: Balyasny Asset Management, a hedge fund managed by Dmitry Balyasny, recently disclosed initiating a position in Walter Energy, Inc. (NYSE:WLT). In a filing with the Securities and Exchange Commission, Balyasny reported owning about 3.3 million shares of Walter Energy, their value amounting to more than $44.8 million, at the current price of the metallurgical coal producer’s stock. The newly added position represents around 5.22% in Walter Energy, and is a curious bet on an industry many investors think is in secular decline.

Dmitry Balyasny

The latest net loss of Walter Energy amounted to $34.4 million, or $0.55 per diluted share in the previous quarter, versus a net income of $31.9 million posted for the same period of last year. Amid lower met-coal prices and a smaller sales volume, the revenue of the company declined to $441.5 million, from $677.6 million posted in the second quarter of last year.

Aside from Balyasny Asset Management, we should mention some other hedge funds that held shares of Walter Energy in the latest round of 13F filings. Steven Cohen’s hedge fund SAC Capital owned 3.2 million shares at the end of last quarter, while the stake held by Don Morgan’s Brigade Capital contained some 1.7 million shares.

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Disclosure: none