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

#2. DHT Holdings Inc. (NYSE:DHT)

– Investors with long positions as of March 31: 24

– Aggregate value of investors’ holdings as of March 31: $119.34 Million

DHT Holdings Inc. (NYSE:DHT) fell out of favor with the “smart money” investors followed by Insider Monkey during the January-to-March period, when the number of asset managers with stakes in DHT fell to 24 from 31 quarter-over-quarter. Correspondingly, the dollar value of all those stakes plummeted by 42% quarter-on-quarter to $119.34 million, partly due to a 28% drop in the value of DHT shares. The 24 smart money investors accumulated 22% of the company’s outstanding shares. The operator of crude oil tankers, whose fleet consists of 20 operating crude oil tankers, has seen its market cap fall by the same 28% since the start of 2016. DHT Holdings paid a dividend of $0.25 per share for the first quarter, up from $0.21 per share paid in the fourth quarter of 2015, $0.18 in the third quarter and $0.15 in the second quarter of last year. The first-quarter dividend represents an impressive annual dividend yield of 17.2%. Christopher Pucillo’s Solus Alternative Asset Management had 4.39 million shares of DHT Holdings Inc. (NYSE:DHT) in its portfolio at the end of March.

#1. Golar LNG Limited (USA) (NASDAQ:GLNG)

– Investors with long positions as of March 31: 25

– Aggregate value of investors’ holdings as of March 31: $231.64 Million

Golar LNG Limited (USA) (NASDAQ:GLNG) also lost some charm among the hedge funds monitored by our team during the first quarter of the year, as the number of funds invested in the company declined to 25 from 29 quarter-over-quarter. Moreover, the aggregate value of those funds’ equity positions in Golar LNG decreased by 42% quarter-over-quarter to $231.64 million even though the company’s stock gained 14% during the three-month period. Roughly 14% of the company’s outstanding common stock resided the portfolios of those 25 hedge funds followed by Insider Monkey. The shares of the independent owner and operator of liquefied natural gas (LNG) carriers and floating storage and regasification units (FSRUs) are up 17% year-to-date. As LNG is cheaper than fuel oil and cleaner-burning than coal, Golar LNG, which has a fleet of 19 LNG carriers and seven FSRUs, is anticipated to have a lot of business in the upcoming years due to increased demand from emerging economies. Christian Leone’s Luxor Capital Group trimmed its stake in Golar LNG Limited (USA) (NASDAQ:GLNG) by 46% during the March quarter to 5.04 million shares.

Disclosure: None