Wexford Capital LP is an investment firm with $2.7 billion of assets under management founded by Charles Davidson and Joseph Jacobs in 1994. Wexford currently manages three hedge funds that have an aggregate $1.5 billion in assets under management: the opportunistic/global macro Wexford Spectrum Fund; the multi-strategy credit oriented Wexford Credit Opportunities Fund; Wexford Catalyst Fund, which is focused on energy, natural resources and industrials. Wexford Capital LP increased its exposure to U.S. equities quite significantly during the first quarter of 2016, as the fund added 50 new positions to its portfolio and increased 24 existing positions during the quarter. Nonetheless, the firm sold out a number of 14 positions in the quarter and reduced 17 existing positions. Considering Wexford’s seemingly bullish stance on the U.S. stock market, it would be a great idea to have a look at the fund’s top five equity holdings at the end of the March quarter.
We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see more details here).
#5. Sunoco LP (NYSE:SUN)
– Number of shares owned by Wexford Capital as of March 31: 447,424
– Value of Wexford Capital’s holding as of March 31: $14.82 Million
Wexford Capital LP upped its stake in Sunoco LP (NYSE:SUN) by 51,822 shares or approximately 13% during the March quarter to 447,424 shares. The increased stake was valued at $14.82 million on March 31 and accounted for 2.9% of Wexford’s entire portfolio. The gas station and convenience store operator has seen its shares declined by 15% in value since the beginning of 2016. The company’s total revenue for the first quarter of 2016 was $3.20 billion, a massive dip from the $4.34 billion top-line figure recorded for the same quarter of 2015. The decrease was mainly driven by a major decrease in the sales price per wholesale motor fuel gallon, as well as a decrease in wholesale motor fuel gallons sold. Nonetheless, Sunoco’s net income increased to $62.01 million from $49.31 million. The stock is priced at 12.4-times expected earnings, above the forward PE multiple of 10.2 for the oil and gas refining and marketing sector. Murray Stahl’s Horizon Asset Management reported ownership of 26,350 shares of Sunoco LP (NYSE:SUN) through its 13F for the first quarter.