Short-term pain, long-term gain. That's how top fund manager Bill Nygren views investing into the precipitous fall in energy stock prices, telling CNBC.com, "Given the recent selloff, this is the area to be opportunistic in." The noted value investor went bargain hunting and in the fourth quarter added a new holding, Chesapeake Energy , which hit a 52-week low of $16.41 in December. The new holding was filed Jan. 8. But when compared with some of his other top holdings, the oil and natural gas producer doesn't seem like the high-quality name Nygren is known for. "This is mostly a play on a changed company," said Nygren. "There's still a taint on the stock from prior management days, which they don't deserve." Read More Energy MLPs in the red: Investors running scared Chesapeake's stock has languished in the two years since its controversial founder and CEO Aubrey McClendon stepped down from his post after a public battle with activists, including Carl Icahn , over some questionable personal financial loans and transactions. But that overhang isn't the only reason this oil and natural gas producer continues to slide in 2015. It's also a victim of the broader energy sector selloff caused by the crash in oil and gas prices. While natural gas is down about half as much as crashing oil over the last six months, a 25 percent decline is still enough to push Chesapeake shares down more than 30 percent over that same period. "This has been the momentum trade of the year, and there's an awful lot of speculation in where the price action is." So instead of focusing on short-term gyrations, Nygren is sticking to his long-term thesis. Read More Most oil and gas dependent places in the US are... "There's new management in share buyback mode and a very shareholder-oriented board. Basically everything they can control is pointed in the right direction."
Source: Chesapeake Energy | Facebook
Short-term pain, long-term gain.
That's how top fund manager Bill Nygren views investing into the precipitous fall in energy stock prices, telling CNBC.com, "Given the recent selloff, this is the area to be opportunistic in."
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