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Rising Oil Does Not Convince Hedge Funds to Bet on Oil Tanker Stocks

#4. Teekay Tankers Ltd. (NYSE:TNK)

– Investors with long positions as of March 31: 16

– Aggregate value of investors’ holdings as of March 31: $99.99 Million

The smart money sentiment towards Teekay Tankers Ltd. (NYSE:TNK) declined during the first three months of 2016, with the number of money managers from our system with long positions in the company falling to 16 from 18 quarter-over-quarter. Meanwhile, the aggregate value of those positions plunged by 49% quarter-on-quarter to $99.99 million, mainly due to a 45% decline in the share price of Teekay Tankers’ stock. Almost 18% of the company’s outstanding shares were stockpiled by the 16 managers tracked by our team. The provider of international marine shipping, which owns 45 double-hulled conventional oil tankers and time-chartered in eight Aframax tankers, has seen its market value drop by 45% since the start of 2016. Teekay Tankers, which pays quarterly dividends that account for 30%-to-50% of quarterly adjusted net income, paid a cash dividend of $0.09 per share for the three months of 2016. The cash dividend equates to an annual dividend yield of 9.57%. Joe Huber’s Huber Capital Management has 18.66 million shares of Teekay Tankers Ltd. (NYSE:TNK) in its portfolio at the end of March.

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#3. Gener8 Maritime Inc. (NYSE:GNRT)

– Investors with long positions as of March 31: 20

– Aggregate value of investors’ holdings as of March 31: $299.63 Million

The number of hedge funds monitored by our team with equity investments in Gener8 Maritime Inc. (NYSE:GNRT) rose to 20 from 18 during the March quarter, whereas the overall value of those investments dropped 31% quarter-over-quarter to $299.63 million. The massive decline was partially attributable to a 25% decline in the value of Gener8 shares. The 20 hedge funds invested in the company accumulated a whopping 51% of its total number of outstanding shares. The shares of the US-based provider of international seaborne crude oil transportation services are 18% in the red thus far in 2016. Gener8 Maritime, which is the result of a merger of General Maritime Corporation and Navig8 Crude Tankers Inc., posted voyage revenues of $13.0 million for the first three months of 2016, up from $121.4 million recorded a year ago. The jump was triggered by an increase in the fleet size and charter hire rates. Howard Marks’ Oaktree Capital Management reported ownership of 13.05 million shares of Gener8 Maritime Inc. (NYSE:GNRT) in its 13F for the first quarter.

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