Bocage Capital, founded by Kurt Billick, was launched in 2010 and is based in San Francisco. It is a market neutral commodity fund, which uses a bottom-up, fundamental analysis to identify investments in the global commodity industry. The fund uses a long / short strategy to reduce the effect of market volatility in the commodity markets.
In the latest round of filing, the fund revealed that the value of its equity portfolio fell to $143.6 million in the fourth quarter from $188.3 million in the previous quarter.
The fund has added two new positions to its portfolio, one of which is Cabot Oil & Gas Corporation (NYSE:COG), an independent oil and gas company. Bocage Capital held 283.4 million shares, worth $11.0 million, and of the company, which was the fifth largest holding in Bocage’s equity portfolio.
During the quarter, Ken Griffin’s Citadel Investment Group also raised its stake by 80% in Cabot Oil & Gas Corporation (NYSE:COG) to 7.9 million shares, with a value of $306.20 million. Citadel Investment Group is the largest shareholder of Cabot Oil amongst the hedge funds we track.
NRG Energy Inc (NYSE:NRG), an integrated wholesale power generation and retail electricity company, was also added to Billick’s portfolio in the fourth quarter. The fund disclosed holding 295.0 million shares, with a reported value $8.5 million.
Last week, NRG Energy Inc (NYSE:NRG) reported its FY2013 results, posting operating revenue of nearly $11.3 billion, up from $8.4 billion a year ago, and earnings of $386.0 million versus $315.0 the previous year. For the current fiscal year, the company expects an adjusted EBITDA of $2.7 – $2.9 billion and free cash flow before growth investments in the range $950 – $1,150 million.
Standing out in Bocage Capital’s equity portfolio is CF Industries Holdings, Inc. (NYSE:CF), of which the fund held 133,633 shares, worth $31.1 million. Bocage Capital is the largest shareholder of CF Industries of all the hedge funds we track, and is followed by Masroor Siddiqui and Bruce Emery’s Naya Capital, which initiated a position in the fourth quarter and currently holds 369,059 shares.
Marathon Petroleum Corp (NYSE:MPC), which moved several points up in Bocage’s portfolio, is now its second largest holding, with a stake of 281,960 shares valued at $25.9 million. Last week, Gary Heminger, President & CEO and Rodney Nichols, Senior Vice-president at Marathon Petroleum Corp (NYSE:MPC), sold around 16,800 and 9,800 shares, respectively.
Bocage Capital sold out its entire stakes in Anadarko Petroleum Corporation (NYSE:APC) and HollyFrontier Corp (NYSE:HFC). Anadarko Petroleum is an independent exploration and production company, while HollyFrontier is a petroleum refiner.
Another company that was dumped in the fourth quarter was Gerdau SA (ADR) (NYSE:GGB), which manufactures and sells steel products.