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.
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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.
Aegean Marine Petroleum Network Inc (NYSE:ANW) was represented in Riverloft Capital’s equity portfolio by a $5.31-million position, which contains 429,600 shares. The Greece-based small-cap company procures marine fuel from refineries, oil producers and other sources and then resells them. Aegean Marine Petroleum Network Inc (NYSE:ANW) delivers the product to the end user with the help of 53 bunkering vessels carrying approximately 323,000 deadweight tons. From the beginning of 2015, the stock of the company has already lost around 19.26%, underperforming the energy sector, which lost 9.46% during the same period. Such a drop in value has a lot to do with the Greece’s debt crisis, though Aegean’s management was smart enough to avoid any significant connections with local banks. The latest target price target from Sidotti stands at $18 on a ‘Buy’ rating. Among other shareholders, 12 West Capital Management, headed by Joel Ramin, held 3.79 million shares of Aegean Marine Petroleum Network Inc (NYSE:ANW) valued at $54.51 million at the end of June.
Finally, Riverloft Capital Management left its position in SunCoke Energy Inc (NYSE:SXC) unchanged over the second quarter at 350,000 shares valued at $4.55 million. Over the second quarter the stock of SunCoke Energy Inc (NYSE:SXC) lost around 33% and still hasn’t recovered. The earnings report turned out to be rather pessimistic, as the company missed both the top and the bottom lines estimates. SunCoke delivered a net loss of $0.04 per share, instead of expected profit of $0.05, and the revenue totalled $348.2 million, which is by $2.67 million smaller than the market wanted to see. On the bright side, the current correction opens up lucrative horizons for long positions as the mean target price today is $19 per share, which implies a significant upside potential. As of June 30, Mark Matthew’s Jet Capital Investors owned around 4.12 million shares of SunCoke at some $61.54 million.
Disclosure: None.
