Here’s Why Cove Street Capital Invested in Blueknight Energy Partners (BKEP)

Investment management company Cove Street Capital recently released its “Small Cap Value Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. At the end of the second quarter, the fund returned -13.70% compared to -17.20% for the Russell 2000 Index and -15.28% for the Russell 2000 Value Index. You can check the top 5 holdings of the fund to know its best picks in 2022.

Cove Street Capital discussed stocks like Blueknight Energy Partners, L.P. (NASDAQ:BKEP) in the second quarter investor letter. Headquartered in Tulsa, Oklahoma, Blueknight Energy Partners, L.P. (NASDAQ:BKEP) is an integrated terminalling service for companies engaged in the production, distribution, and handling of liquid asphalt in the United States. On August 25, 2022, Blueknight Energy Partners, L.P. (NASDAQ:BKEP) stock closed at $4.6300 per share. Blueknight Energy Partners, L.P. (NASDAQ:BKEP) has a market capitalization of $194.011 million.

Here is what Cove Street Capital specifically said about Blueknight Energy Partners, L.P. (NASDAQ:BKEP):

“On to specifics on which we focus most of our time, we have Blueknight Energy Partners, L.P. (NASDAQ:BKEP), the second time was somewhat of a charm. In late 2019, the Ergon Family, the general partner of Blueknight Energy, made an inadequate offer to acquire the balance of the company and simplify a complicated ownership structure. Within a couple of months, the offer was withdrawn as Ergon was not able to reach an agreement with the company’s conflict committee. That is when we got involved, and subsequently we built a position. Recently, Ergon made an improved offer that we consider to be “fair at best”, but still we are pleased to book a nice return.”

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Blueknight Energy Partners, L.P. (NASDAQ:BKEP) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Blueknight Energy Partners, L.P. (NASDAQ:BKEP) was held by 5 hedge fund portfolios at the end of the second quarter compared to 4 in the previous quarter.

We discussed Blueknight Energy Partners, L.P. (NASDAQ:BKEP) in another article and shared the MLP dividend stocks to buy. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.