In a sign that value oriented hedge fund managers are continuing to wade into the depressed offshore drilling sector, David Einhorn’s Greenlight Capital has reported a 5.2 percent stake in Ensco plc as of June 30, 2010. Mr. Einhorn controls 7.4 million shares with a market value of slightly over $300 million at today’s closing price. This represents a substantial commitment for Mr. Einhorn’s funds which were valued at $2.93 billion as of March 31. It appears that his purchases were definitely made in the second quarter, and most likely were made after the Deepwater Horizon disaster.
We have profiled two companies in the offshore drilling sector over the past six weeks: Ensco and Noble Corporation. Click on the links below to read the analysis and follow up articles. Both companies remain good selections today for investors who seek exposure to the offshore drilling sector and are willing to look beyond the temporary difficulties associated with the Gulf of Mexico oil spill and the Federal Government’s regulatory response.
- Ensco International Profile and Analysis on June 11, 2010
- Ensco Provides Rig Status Update on June 15, 2010
- Noble Corporation Profile and Analysis on June 2, 2010
- Faulty Well Design Highlights Importance of Redundancy on June 19, 2010
- Investigation of Deepwater Horizon Points to Human Error on June 14, 2010
- Drilling Moratorium’s Impact in Numbers on June 6, 2010
Disclosure: Long Noble. No Position in Ensco.