Below is the list of top 4 stock picks of Marc Lasry’s Avenue Capital. For Marc Lasry’s history, investment philosophy, and hedge fund performance, go directly to Top Stock Picks of Marc Lasry’s Avenue Capital.
4. Amplify Energy Corp. (NYSE:AMPY)
Marc Lasry’s Stake Value: $10.3 million
Percentage of Marc Lasry’s 13F Portfolio: 4.79%
Number of Hedge Fund Holders: 13
Marc Lasry’s Avenue Capital has been holding a position in Amplify Energy Corp. (NYSE:AMPY) since the fourth quarter of 2019. Amplify Energy is among the biggest beneficiaries of improving oil and gas prices. Its stock price has increased 145% so far this year. What’s more, the company expects to generate full-year 2021 free cash flow in the range of $45-$55 million, with expectations that free cash flow will top the $200 million level through 2023.
As of the end of the June quarter, hedge fund sentiment increased in Amplify Energy. Two Sigma Advisors and Oaktree Capital Management were among the leading shareholders. Overall, 13 hedge funds were bullish on Amplify Energy at the end of the second quarter of 2021 compared to 12 positions in the previous quarter.
3. Gulfport Energy Corporation (NYSE:GPOR)
Marc Lasry’s Stake Value: $10.78 million
Percentage of Marc Lasry’s 13F Portfolio: 4.98%
Number of Hedge Fund Holders: 15
Marc Lasry added Gulfport Energy Corporation (NYSE:GPOR) to his 13F portfolio during the second quarter of this year. The company fell into chapter 11 bankruptcy in 2020 but improving commodity prices and operational strategies helped it to emerge from bankruptcy in May this year. Reuters recently reported that Gulfport Energy is exploring strategic options including a possible sale.
Greenlight Capital, an investment management firm, mentioned a few stocks including Gulfport Energy Corporation in the second quarter investor letter. Here is what Greenlight Capital stated:
“ESG investing is inflationary, as green energy is simply more expensive than hydrocarbons. Hydrocarbon energy companies are starved for capital and are being told to change their ways. The result is less exploration and drilling. Even with benchmark oil prices surging over the last year, companies are loath to drill more. Normally, the cure for high prices is high prices. With ESG in the proverbial driver’s seat, we might still need much higher prices in order to increase investment to meet demand.
There is almost nothing less popular than thermal coal. From 2011 to 2020, U.S. coal production declined by 51%. U.S. demand has fallen as we’ve shifted to alternative sources of electricity. As unpopular as coal is though, it still makes up about 20% of U.S. electricity generation. Globally, coal demand is growing modestly as China and India add power generation capacity faster than the West is reducing it. Even so, reduced oil and gas drilling has caused natural gas prices to advance and coal prices are following. Seaborne thermal coal prices are up 140% year-over-year and at the highest levels since 2011, and Northern Appalachia thermal coal prices are catching up, rising 23% in the last month alone.
We also own Gulfport Energy (GPOR), an Appalachian natural gas driller that recently emerged from bankruptcy and is poised to benefit from higher natural gas prices. Currently, there are no analyst estimates for GPOR.”
2. Chesapeake Energy Corporation (NASDAQ:CHK)
Marc Lasry’s Stake Value: $47.32 million
Percentage of Marc Lasry’s 13F Portfolio: 21.83%
Number of Hedge Fund Holders: 43
Chesapeake Energy Corporation (NASDAQ:CHK) is one of the top stock picks of Marc Lasry’s Avenue Capital as shares of the exploration and production company grew significantly since it exited chapter 11 bankruptcy. Avenue Capital Group bought 0.93 million shares of Chesapeake during the second quarter.
As of the end of June, Oaktree Capital Management was the leading shareholder of Chesapeake. Of the 873 hedge funds tracked by Insider Monkey, 43 hedge funds were bullish at the end of June compared to 42 positions in the previous quarter. Our calculations showed that CHK isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
1. Vistra Corp. (NYSE:VST)
Marc Lasry’s Stake Value: $119 million
Percentage of Marc Lasry’s 13F Portfolio: 55%
Number of Hedge Fund Holders: 32
Vistra Corp. (NYSE:VST) is the largest stock holding of Avenue Capital Group, according to the second quarter 13F filings. The firm first initiated a position in Vistra in the third quarter of 2017 and left its position unchanged during the June quarter of 2021. Vistra Corp is one of the top stock picks to hold for the long-term amid its healthy dividend yield of around 3.50%.
Vistra has experienced a decrease in enthusiasm from the smart money as it was in 32 hedge funds’ portfolios at the end of June compared to 49 positions in the previous quarter. Ken Griffin’s Citadel Investment Group significantly lifted its existing position in the company.
You can also take a look at Billionaire Englander’s Top 10 Stock Picks and Billionaire David Tepper’s Top 10 Stock Picks.
