Five Coal Miners That Hedgies Have Stocked Up On For A Turnaround

#3 Peabody Energy Corporation (NYSE:BTU)

Investors with Long Positions (as of September 30): 16

Aggregate Value of Investors’ Holdings (as of September 30): $57.8 Million

So far this year, Peabody Energy Corporation (NYSE:BTU)’s shares have dropped by a whopping 93%. The $132.28 million coal company is now trying to lower its liabilities and cut down on loss generating operations. Peabody sold three mines to Bowie Resource Partners for $358 million in cash and the assumption of $105 million in debt. The total number of hedge funds backing the company decreased by nine during the July-September period and the aggregate value of these holdings consequently slid by 60%. Steadfast Capital Management, led by Robert Pitts, holds about 8.95 million shares of Peabody Energy Corporation (NYSE:BTU).

 

#2 Westmoreland Coal Company (NASDAQ:WLB)

Investors with Long Positions (as of September 30): 19

Aggregate Value of Investors’ Holdings (as of September 30): $95.72 Million

The total number of hedge funds with exposure to Westmoreland Coal Company (NASDAQ:WLB) dropped by 2 during the third quarter, while the aggregate value of these holdings depreciated by 28%. The share price fell by more than 32% during this period and is down by over 85% so far this year. The oldest independent coal company in the U.S. recently has agreed to acquire the San Juan Mine in Farmington from BHP Billiton and will take over operations at the start of 2016. Venor Capital Management, led by Jeffrey Bersh and Michael Wartell, hiked its stake in Westmoreland Coal Company (NASDAQ:WLB) by 43% to 1.14 million shares during the third quarter.

 

#1 CONSOL Energy Inc. (NYSE:CNX)

Investors with Long Positions (as of September 30): 25

Aggregate Value of Investors’ Holdings (as of September 30): $893.96 Million

The $1.5 billion integrated energy company saw its share price decline by over 56% during the third quarter, which led to a fall of 50% in the aggregate value of hedge funds’ holdings during this period, even though the number of funds long CONSOL Energy Inc. (NYSE:CNX) increased by two. CONSOL’s net loss per share for the third quarter stood at $0.28, which was $0.23 below the expectations, while quarterly revenues of $813.94 million managed to beat the estimates by $90.1 million. Mason Hawkins‘ Southeastern Asset Management holds about 46.39 million shares of CONSOL Energy Inc. (NYSE:CNX) as of September 30.

Disclosure: None