Billionaire Stocks: Top 5 Losers

Top five laggers in the last 12 months

1. Chesapeake Energy (NYSE:CHK)

Screen Shot 2015-07-15 at 12.45.08 PMThe lower oil prices took a toll on many energy related stocks and Chesapeake Energy is no exception. The stock is down -61.25% in one year, placing Chesapeake in the top losing billionaire stocks. This week, Chesapeake shares traded over 3% lower, as crude oil prices keep sliding. The decline seems to be driven by concerns that the West will lift the sanctions on Iran. If this happens, Iran may export again, increasing the worrisome global supply even more.

Carl Icahn has a significant position in Chesapeake with a 3.23% allocation or 73 million shares, purchased at an average price of $17. Icahn’s 1-year return on his investment in Chesapeake is a depressing -10.31%. Last quarter, the billionaire increased his exposure in Chesapeake and he is now one of the company’s biggest shareholders.

2. Console Energy (NYSE:CNX)

Screen Shot 2015-07-15 at 12.47.19 PMConsole Energy also took a big hit in the light of lower oil prices. In one year, the stock is down over 54%. The story of Console’s struggling stock is similar to that of Chesapeake. While both companies show strong financials, they are not immune to macro events. If the global oil supply and demand will eventually reach equilibrium the stocks may benefit.

Console Energy is one of David Enihorn’s largest positions with a 7.5% allocation or 20.5 million shares. The billionaire purchased the stock at an average price of $35.60. In his recent second quarter letter to investors Einhorn noted: “Our other significant loser in the quarter was CONSOL Energy (CNX), which fell from$27.89 to $21.74. While natural gas prices were stable during the quarter, coal prices fell about 10%. Near-term this is not a significant concern, as CNX prices are locked in underlong-term contracts for almost all of 2015 and about half of 2016-2018 production. Assuming unhedged forward pricing for coal and natural gas, our long-term resource run-off model values CNX at about $35 per share. This is based on depressed commodity prices and does not give credit for the company’s implementation of zero-based budgeting, which should further improve its position as the low-cost supplier.” This week on Tuesday, the stock closed at $20

3. Sprint Nextel Corp (NYSE:S)

Screen Shot 2015-07-15 at 12.48.25 PMAnother stock that slid over 50% in one year is the telecommunication giant Sprint. The stock hit a 52-week low this week, and on Tuesday it closed at $4. This drop is most likely explained by the company’s weakening financials. According to The Street, Sprint’s free cash flow had been declining since 2012 and the debt increased to $33 billion. Additionally, the company’s revenue is the same as it was in 2012. Larry Robbins and John Paulson hold Sprint shares purchased at an average price of $9.22 and $5.67 respectively. Last quarter the billionaires sold a combined 25 million Sprint shares.

4. Zillow (NYSE:Z)

Screen Shot 2015-07-15 at 12.49.58 PMThe online real estate marketplace Zillow has been having a difficult year. Zillow shares are down 16% since January, and 38.37% in one year. Earlier this month, the stock traded lower after the company announced the resignation of CFO Chad Cohen. A replacement was not announced yet. The stock has been losing value since the company revealed plans to acquire the rival Trulia in 2014. The purchase of Trulia was completed on February 17th 2015 for $2.5 billion in stock.

Last quarter, the billionaire investors bought over 800K Zillow shares. Chase Coleman has a 3.94% allocation purchased at an average price of $102.60. His 1-year return is -21.05%. John Paulson also holds 0.20 million shares purchased at an average price of $110.46.

5. Hertz (NYSE:HTZ)

Screen Shot 2015-07-15 at 12.51.04 PMHertz’s stock declined in value $40.9% in one year, and over 16% this quarter alone. Recently, the Irish airline Ryanair is taking legal action against Hertz, after Hertz terminated an agreement to provide rental cars to the airline’s passages.

Last quarter, the billionaires sold 303K Hertz shares, but Carl Icahn, Chase Coleman and Larry Robbins still hold large stakes. Carl Icahn has the largest stake with a 3.51% allocation purchased at an average price of $27.21. Icahn started his position in Q3 last year with a $9 billions investment.

Interested in more billionaire stocks? Visit the iBillionaire Index.

 

 

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