Talara Capital Management Is Betting on These Stocks
Talara Capital Management was founded by David Zusman, a former portfolio manager at Daniel Arbess’ Perella Weinberg Partners. New York-based Talara Capital focuses on global resource and industrial companies. It has an estimated $193 million of assets under management. In its latest 13F, the fund reported a total of 20 positions as held at the end of the fourth quarter of 2013. The total value of holdings amounted to $100.3 million, slightly up from around $100 million in the previous quarter.
Talara Capital is a big fan of EQT Corporation (NYSE:EQT), which is the fund’s largest holding in term of value. The fund increased its stake in the company to 130,000 shares, worth $11.7 million, from 62,300 shares held previously. EQT Corporation (NYSE:EQT) is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission. The company reported fourth quarter 2013 net income attributable to EQT of $115.2 million, compared to $48.0 million in 2012. It reported 2013 net income attributable to EQT of $390.6 million, compared to $183.4 million last year, according to statement. EQT Corporation (NYSE:EQT) was also the fifth largest holding in George Soros‘ Soros Fund Management equity portfolio, according to the fund’s most recent 13F.
Talara Capital is bullish on Emerald Oil Inc (NYSEMKT:EOX), in which it boosted its position to 1.42 million shares from 1.36 million shares held previously. The value of stake was $10.9 million. Emerald Oil Inc (NYSEMKT:EOX) is an independent exploration and production focused on developing of oil wells in the Williston Basin of North Dakota and Montana while targeting the Bakken and three forks shale oil formations. On March 24, the company announced the closed its announced private offering of $172.5 million of 2.00% convertible senior notes due 2019, which includes the full exercise by the initial purchasers of their option to purchase an additional $32.5 million principal amount of the convertible notes, according to a news release.
In General Motors Company (NYSE:GM), Talara Capital reduced its stake to 150,000 shares from 160,000 shares held earlier. The value of holding was $6.1 million. Recently, the automaker announced three separate recalls involving U.S. production and sales of approximately 303,000 Chevrolet Express and GMC Savana, 63,900 Cadillac XTS full-size sedan and 1.18 million Buick Enclave and GMC Acadia models. In an interview with CNBC’s Squawk on the Street, Kyle Bass, founder and manager of the Dallas-based hedge fund, Hayman Advisors, claims that shares of General Motors Company (NYSE:GM) are undervalued and could hit a high $50 per share in the next 12 to 18 months, despite possible liability from the ongoing probe over the 303 deaths as a result of air bag failure in some of GM’s models, calling it an “investment distraction”. Another significant shareholder of General Motors is Warren Buffet, who owns 40.00 million shares.
Talara Capital revealed cutting its stake in MRC Global Inc (NYSE:MRC) to 190,000 shares, worth $6.1 million, from 283,900 shares disclosed previously. MRC Global Inc (NYSE:MRC) distributes pipe, valve and fitting products and services to the energy and industrial markets. The company reported fourth-quarter 2013 net income of $23.3 million, or $0.23 per diluted share, compared to a fourth quarter 2012 net loss of $6.4 million, or $0.06 per diluted share, according to a statement.
The investor started a new position in Gulfport Energy Corporation (NASDAQ:GPOR), owning 95,000 shares, with a reported value of around $6 million. Gulfport Energy Corporation (NASDAQ:GPOR) is an independent oil and natural gas exploration and production company with its principal producing properties located in the Utica Shale of Eastern Ohio and along the Louisiana Gulf Coast. For the fourth quarter of 2013, the company reported net income of $24.3 million on oil and gas revenues of $68.3 million, or $0.30 per diluted share. For the full year 2013, it reported net income of $153.2 million on oil and gas revenues of $262.2 million.
At the same time, Talara Capital sold out its positions in Anadarko Petroleum Corporation (NYSE:APC) and Ashland Inc (NYSE:ASH), in which it earlier held 50,000 shares and 94,900 shares, respectively.