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These Activist Investors Have Been Crushed By The Oil Rout
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
zerohedge.com / by Tyler Durden / 02/19/2016 08:13
They may end up being right, but they were all way too early.
Activists investors are that special breed of hedge fund managers known for their aggressive forays into situations few others would touch (especially if much, much debt can be issued) usually demanding management, business or board changes. And while sometimes they make a killing thanks to their aggressiveness, other times they themselves are crushed.
Like this time.
Activist investments in the energy space has been nothing short of a total disaster: asReuters reports, those “brave enough to have ventured into the volatile energy sector are paying a heavy price for their courage, stuck with hefty paper losses and no near-term recovery in sight.”
Among the more prominent names pounded in recent months are Corvex Management, Elliott Associates and ValueAct Capital – they are among the largest and most prominent activist firms that have seen the value of their energy holdings tumble in step with sliding crude prices and remain exposed to the price rout.
Southeastern Asset Management, an investment management firm and occasional activist, has seen the value of its energy bets fall $2.7 billion in the last year, which include holdings in Chesapeake Energy Corp and Consol Energy.
Corvex’s $1 billion holding in natural gas pipeline company Williams Companies worth around 14 percent of the firm’s total portfolio, represents the largest current exposure of any activist fund to a single energy stock, according to quarterly filings. Corvex’s stake in Williams – which has an agreement to be purchased by pipeline rival Energy Transfer –lost $1.1 billion over last year, filings show. Corvex declined to comment.
The post These Activist Investors Have Been Crushed By The Oil Rout appeared first on Silver For The People.
Thanks to BrotherJohnF
Source: http://silveristhenew.com/2016/02/19/these-activist-investors-have-been-crushed-by-the-oil-rout-2/
