Why Adobe, Starwood, Chesapeake, Wynn and Columbia Pipeline Are Flying High Today

Also up by approximately 4.5% on Friday is Chesapeake Energy Corporation (NYSE:CHK). Two different events could be driving said surge: higher oil prices and a potential debt swap. Brent Crude is up by about 0.7% today, while WTI Crude has gained more than 0.2% so far. On the other hand, Reuters reported late Thursday that Chesapeake is considering swapping out some of its current debt for new 1.5 lien debt; while details have not been disclosed yet, a report from CapitalStructure says the swap looks attractive, taking into account the current pricing of the company’s bonds.

Among the funds that we keep track of, 32 held long positions in Chesapeake Energy Corporation (NYSE:CHK) heading into 2016, with their stakes amassing almost 24% of the company’s total shares as of December 31. Carl Icahn’s Icahn Capital LP was the largest institutional investor of record in the company at the end of the fourth quarter, holding 73.05 million shares. However, on February 12, Mason Hawkins’ Southeastern Asset Management displaced Icahn after declaring ownership of 89.57 million shares, up from 55.67 million shares held on December 31.

Another big gainer in Friday trading is Wynn Resorts, Limited (NASDAQ:WYNN), which is up by almost 7% after Macquarie Research upgraded its rating on the Macau casino industry to ‘Neutral’, while Deutsche Bank raised its price target on Wynn in particular to $94 from $82 and maintained a ‘Buy’ rating on the stock. Macquarie based its ratings promotion for the industry on an updated outlook. The firm’s analysts now expect gross gaming revenue to decline by only 6%, instead of the 13% tumble expected previously. The report cited several factors behind the more optimistic view, including growth in residential real estate investments and China import value. However, Macquarie pointed out that Wynn remains its “top-short pick.”

As of the end of the fourth quarter, 30 funds among those we track were long Wynn Resorts, Limited (NASDAQ:WYNN), their stakes accounting for almost 20% of the company’s outstanding stock. Once again, Southeastern Asset Management was the largest investor of the stock in our database, holding more than 12.58 million shares valued at roughly $870 million on December 31.

Finally, there’s Columbia Pipeline Group Inc (NYSE:CPGX), which is up by about 5.8% this afternoon. On late Thursday, TransCanada Corporation (USA) (NYSE:TRP) agreed to acquire the company for $25.50 per share in cash, an 8.5% premium to the stock’s closing price on Thursday. The deal values the company at about $13 billion, including $2.8 billion in assumed debt. Columbia Pipeline Group, the general partner of Columbia Pipeline Partners LP (NYSE:CPPL), said the partnership will remain publicly traded.

Columbia Pipeline Group Inc (NYSE:CPGX) counted the support of 25 funds among those we track at the end of the fourth quarter. Their stakes, valued at $856.34 million on December 31, accounted for 13.5% of the company’s total shares. One fund that seemed particularly bullish was Stuart J. Zimmer’s Zimmer Partners, which acquired 10.98 million shares over the October-to-December period, taking its holding to 12.83 million shares, valued at more than $256 million.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned in this article.