Sellers Capital Up 65% YTD

Jul 11 2008 | 2:00am ET

Sellers Capital’s $230 million flagship hedge fund is up an eye-popping 65.3% in the first half on natural gas and oil bets.

The Chicago-based firm netted a 27.3% return in the second quarter on the strength of its investment in Contango Oil and Gas, a Houston-based independent natural gas and oil company.

“The second quarter of 2008 was one of our best quarters ever and our third straight good quarter, though the market has declined approximately 15% in the meantime,” wrote Mark Sellers in a monthly update to investors. “Once again, our best-performing stock was Contango Oil and Gas, up 43% for the quarter.”

Sellers added that he expects the company to move toward a partial or outright sale later this year in 2008 based on its better-than-expected increase in reserves and its announcement last month that it was meeting with prospective buyers.

The firm’s long positions other than Contango did not fare well last quarter, but its hedges and  single short position in MBIA, a financials services concern, did so well that they essentially offset this, said Sellers.

“The MBIA fell 64% during the quarter and we’re still short the stock.”

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...