Kurt Billick’s Bocage Capital Is Betting On These Stocks

Bocage Capital, founded by Kurt Billick, was launched in 2010 and is based in San Francisco. It is a market neutral commodity fund, which uses a bottom-up, fundamental analysis to identify investments in the global commodity industry. The fund uses a long / short strategy to reduce the effect of market volatility in the commodity markets.

Kurt Billick is a former employee of Bruce Covner's Caxton Associates and is currently employing the same strategy he utilized at Caxton.

Cabot Oil & Gas Corporation (NYSE:COG)

In the latest round of filing, the fund revealed that the value of its equity portfolio fell to $143.6 million in the fourth quarter from $188.3 million in the previous quarter.

The fund has added two new positions to its portfolio, one of which is Cabot Oil & Gas Corporation (NYSE:COG), an independent oil and gas company. Bocage Capital held 283.4 million shares, worth $11.0 million, and of the company, which was the fifth largest holding in Bocage’s equity portfolio.

During the quarter, Ken Griffin’s Citadel Investment Group also raised its stake by 80% in Cabot Oil & Gas Corporation (NYSE:COG) to 7.9 million shares, with a value of $306.20 million. Citadel Investment Group is the largest shareholder of Cabot Oil amongst the hedge funds we track.

NRG Energy Inc (NYSE:NRG), an integrated wholesale power generation and retail electricity company, was also added to Billick's portfolio in the fourth quarter. The fund disclosed holding 295.0 million shares, with a reported value $8.5 million.

Last week, NRG Energy Inc (NYSE:NRG) reported its FY2013 results, posting operating revenue of nearly $11.3 billion, up from $8.4 billion a year ago, and earnings of $386.0 million versus $315.0 the previous year. For the current fiscal year, the company expects an adjusted EBITDA of $2.7 - $2.9 billion and free cash flow before growth investments in the range $950 - $1,150 million.

Standing out in Bocage Capital’s equity portfolio is CF Industries Holdings, Inc. (NYSE:CF), of which the fund held 133,633 shares, worth $31.1 million. Bocage Capital is the largest shareholder of CF Industries of all the hedge funds we track, and is followed by Masroor Siddiqui and Bruce Emery’s Naya Capital, which initiated a position in the fourth quarter and currently holds 369,059 shares.

Marathon Petroleum Corp (NYSE:MPC), which moved several points up in Bocage's portfolio, is now its second largest holding, with a stake of 281,960 shares valued at $25.9 million. Last week, Gary Heminger, President & CEO and Rodney Nichols, Senior Vice-president at Marathon Petroleum Corp (NYSE:MPC), sold around 16,800 and 9,800 shares, respectively.

Bocage Capital sold out its entire stakes in Anadarko Petroleum Corporation (NYSE:APC) and HollyFrontier Corp (NYSE:HFC). Anadarko Petroleum is an independent exploration and production company, while HollyFrontier is a petroleum refiner.

Another company that was dumped in the fourth quarter was Gerdau SA (ADR) (NYSE:GGB), which manufactures and sells steel products.

Disclosure: none

Recommended Reading:

Free Stock Research Report: Polycom Inc (PLCM)

Free Stock Research Report: Outerwall Inc (OUTR)

Glenn Welling’s and Engaged Capital Are Fond of These Stocks

Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks