Let’s now take a brief look at Anadarko Petroleum Corporation (NYSE:APC)’s financial health, which is of crucial importance for investors given the uncertainty over crude oil prices. The company had $939 million in cash on December 31, along with $4.75 billion of borrowing capacity under its revolving credit facilities. Meanwhile, Anadarko’s debt amounted to $15.75 billion at the end of 2015. The company’s management believes that its cash on hand, expected operating cash flows, and proceeds from expected asset monetization efforts will be enough to fund its 2016 operational and capital programs. It should be noted that the company recently cut its quarterly dividend to $0.05 per share from $0.27, which will offer an additional $450 million in cash for improving Anadarko’s liquidity. Let’s not forget to mention that the shares of Anadarko have lost 44% since the beginning of 2016.
Hedge fund activity in Anadarko Petroleum Corporation (NYSE:APC)
At the end of the fourth quarter, a total of 61 of the hedge funds tracked by Insider Monkey were long this stock, a decline of 13% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, HBK Investments, managed by David Costen Haley, holds the number one position in Anadarko Petroleum Corporation (NYSE:APC). HBK Investments has a $427.5 million call position in the stock, comprising 4.1% of its 13F portfolio. The second most bullish fund manager is Citadel Investment Group, led by Ken Griffin, holding a $233.9 million position; 0.3% of its 13F portfolio is allocated to the stock. Other members of the smart money that hold long positions consist of Andreas Halvorsen’s Viking Global, Phill Gross and Robert Atchinson’s Adage Capital Management and Jonathon Jacobson’s Highfields Capital Management.
Because Anadarko Petroleum Corporation (NYSE:APC) has faced a declination in interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of hedge funds that elected to cut their entire stakes by the end of the third quarter. It’s worth mentioning that Eric W. Mandelblatt’s Soroban Capital Partners dumped the biggest position of the 700 funds followed by Insider Monkey, valued at an estimated $122.6 million in stock. Keith Meister’s fund, Corvex Capital, also dumped its stock, about $119 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 9 funds by the end of the third quarter.
The final page of this article discusses the hedge fund activity in other companies that have market caps close to Anadarko Petroleum’s market capitalization.
