In a new filing with the U.S. Securities and Exchange Commission, SPO Advisory Corp, led by John H. Scully, disclosed boosting its passive stake in Laredo Petroleum Inc (NYSE:LPI). In a separate filing, Orange Capital, led by Daniel Lewis, revealed upping its activist stake in Bellatrix Exploration Ltd (NYSE:BXE). SPO Advisory increased its position in Laredo Petroleum Inc (NYSE:LPI) to 13.45 million shares from 4.19 million shares the fund held previously. The stake equates to 6.3% of the company’s outstanding common stock. In the second filing, Orange Capital raised its activist stake in Bellatrix Exploration Ltd (NYSE:BXE) to 31.51 million shares from 28.15 million shares held at the end of March. The new stake is equal to 16.4% of the company’s outstanding common shares.
We track more than 700 investors, including SPO Advisory Corp and Orange Capital. Tracking hedge funds is a wise decision for every investor. We have discovered in our research that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. In forward tests since August 2012 through March 2015 this small-cap strategy beat the market by more than 80 percentage points, returning 139% (read the details here). Hence a retail investor needs to isolate himself from the herd and take advantage of the prevalent arbitrage opportunities in the market by concentrating on small-cap stocks.
SPO Advisory is a value investing fund founded 1991 by John Scully, the late William Patterson, and William Oberndorf. SPO Advisory holds a very concentrated portfolio, with just 13 long positions. The fund focuses on consumer, energy, technology, and finance stocks. The fund’s top three holdings, in terms of value, are represented by Equinix Inc (NASDAQ:EQIX), Charter Communications, Inc. (NASDAQ:CHTR), and Pioneer Natural Resources (NYSE:PXD).
Laredo Petroleum Inc (NYSE:LPI), is a $2.86 billion independent energy company engaged in the exploration and development of oil and natural gas properties in the United States. For the first quarter of 2015, Laredo Petroleum Inc (NYSE:LPI) reported a net loss of $472,000, versus a loss of $213,000 in the same quarter last year. During the the most recent quarter, the company produced a record 47,487 barrels of oil equivalent (BOE) per day, representing an increase of about 47% compared to last year. Shares of Laredo have gained 27.12% year-to-date, a substantial increase from the industry average of just 2.45%.