Investing, politics, policy, economics, money, law, etc.
Seth Klarman filed a bunch of 13Ds today. I haven’t gone through them all yet, but there are two filings in which I’m most interested.
First, Klarman has increased his stake in Exterran Holdings (EXH), an energy services company, by 70%. Klarman now owns 7.62% of the outstanding shares.
Second, Klarman has reduced his holding in Linn Energy (LINE), an energy MLP, by about 25%. Klarman still owns about 6.95% of the oustanding shares.
Alleghany Corp (Y) last Friday field its 13F-HR, its securities holdings report. There are 13 new holdings, though they are all quite small relative to their entire portfolio. However, I still would like to analyze further some of their new holdings.
What stands out most to me is that eight of these new holdings are related to the energy/oil/gas industries. In general, I think all these new holdings are in some way related to energy or construction. I guess this is not surprising considering the recent decline in oil and the sell-off of all oil- and energy-related companies.
The new holdings are (from largest to smallest investment):
I will most likely look closely at CBI, GLBL, and TRMA. Trico Marine in particular looks appealing since it has fallen quite a bit and its Chairman and CEO recently purchased 10,000 shares.
The Royal Gazette reports that XL Capital’s (XL) CEO Michael McGavick recently purchases $2 million of his company’s stock:
XL Capital Ltd. chief executive officer Michael McGavick has shown his confidence in his company bouncing back from its recent hard times by spending $2 million of his own money on the Bermuda-based insurer’s shares.
A regulatory filing on Thursday showed that Mr. McGavick purchased 110,000 XL shares on the open market at $18.19 apiece, thereby quadrupling his holding in the company he leads.
Another insider to give personal financial backing to the company was former Bermuda Governor Sir John Vereker, an XL director, who invested nearly $50,000 in its shares, also on Thursday.
Mr. McGavick has been in the XL hot seat for three months, succeeding Brian O’Hara, and has experienced a baptism of fire during one of the most difficult periods in the company’s history.
A company’s CEO purchasing large amounts of stock on the open market is a very positive sign. I’ve written about XL previously in connection to their exposure to the massive storm and flood damage Iowa saw not too long ago. XL’s stock is down over 70% for the past 12 months. I am seriously thinking about establishing a small position in XL with this recent bit of news.
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