Riverloft Capital Management is a Miami-based hedge fund led by Marc Lehmann, a graduate of the Wharton School, who started working at the fund in 2011. Lehman has an extensive background, having worked for about eight years at Barry Rosenstein’s JANA Partners. According to its most recent 13F filing for the second quarter of 2015, Riverloft has an equity portfolio, which contains 52 positions worth $371.12 million. Around 70% of the fund’s equity portfolio is represented by Financial stocks, but the investor also has some exposure to energy companies, such as Sunedison Inc (NYSE:SUNE), Aegean Marine Petroleum Network Inc (NYSE:ANW) and SunCoke Energy Inc (NYSE:SXC). In the following paragraphs we are going to take a closer look at Riverloft’s top energy picks.
We pay attention to hedge funds’ moves because our research has shown that hedge funds are extremely talented at picking stocks on the long side of their portfolios. It is true that hedge fund investors have been underperforming the market in recent years. However, this was mainly because hedge funds’ short stock picks lost a ton of money during the bull market that started in March 2009. Hedge fund investors also paid an arm and a leg for the services that they received. We have been tracking the performance of hedge funds’ 15 most popular stock picks in real time since the end of August 2012. These stocks have returned 123.1% since then and outperformed the S&P 500 Index by around 66.5 percentage points (see more details here). That’s why we believe it is important to pay attention to hedge fund sentiment; we also don’t like paying huge fees.
Riverloft cut its stake in Sunedison Inc (NYSE:SUNE), by 26% on the quarter to 300,000 shares, valued at $8.97 million. Sunedison Inc (NYSE:SUNE) is an expert developer of photovoltaic energy solutions, an owner and operator of clean power generation assets, as well as a manufacturer of silicon wafers. The stock gained 53% during the first six months of 2015, but following the most recent financial results, which were published in the mid-July the stock is in the free fall and slumped to $15.41 from a peak of $31.66. The company’s financial results for the second quarter were mixed and included a net loss of $0.89 per share, which missed the estimates by $0.38. The revenue of $455 million, managed to beat the expectations by $61.29 million. Among other prominent funds that we follow, Boykin Curry’s Eagle Asset Management owns some 1.04 million shares of Sunedison Inc (NYSE:SUNE) valued at $31.16 million as of June 30.