Kyle Bass Makes Huge Bet Against McDonald’s, Sells Off Clovis

Bass Maintains Eco-Stim 

Unlike what the fund did to McDonald’s and NMI, Hayman Advisors held steady its position in Eco-Stim Energy Solutions Inc (NASDAQ:ESES) at 2.13 million shares, which were worth around $6.177 million at the end of June. Eco-Stim accounted for 4.92% of Bass’ fund’s portfolio at the end of the second quarter. Given that Kyle Bass has strong Texas roots, it’s not surprising that he would own shares of companies in the energy sector, which in Eco-Stim’s case relates to oil services. Given Eco-Stim’s nano-cap valuation of slightly over $30 million, the company has largely flown under the radar of Wall Street and hasn’t rallied like other oil service stocks have. Given its fundamentals, Eco-Stim will need higher WTI/more contract wins to do well.

Bass Sells Out of Clovis 

Kyle Bass sold out its stake in Clovis Oncology Inc (NASDAQ:CLVS) in the second quarter, saying good bye to 100,000 shares it had held earlier. Although Bass was originally a bull on the stock, saying at one point that it was worth $45 per share, the fund evidently changed its mind and missed out on the big rally after June 30. Traders are now looking forward to the FDA’s decision on Clovis’ rucaparib for the potential treatment of ovarian cancer. The PDUFA date for the drug is Feb 23, 2017. At the end of June, 21 funds from our database had a bullish position in Clovis Oncology Inc (NASDAQ:CLVS), compared to 24 funds a quarter earlier.

Disclosure: none