One group of high-income hedges is expected to turn the resources of a North Sea oil and gas company into building larger facilities as electricity prices rise.
Taconic Capital, CQS and Kite Lake Capital are some of the most held funds in the Norwegian Energy Company (Noreco), the second largest oil and gas producer in Denmark, whose shares have fallen by 99% since the financial crisis.
Taconic and Kite Lake among them own more than 50 percent of the company. CQS, one of London’s largest investments, in March revealed a low of 13%, while other positions held in the fund were managed by billionaire founder Michael Hintze.
Caius Capital and Astaris Capital, a fundraiser founded last year by Martin Beck, co-founder of Sothic Capital, also hold positions, while York Capital is also a shareholder.
Noreco owns a market share of 3.14bn of Norwegian krone (£ 270m), and it is not uncommon to have such large stocks on its shareholding list.
Last week, the fund re-energized the company, with Peter Coleman of Taconic and Jan Lernout of Kite Lake voting for the committee at the company’s annual general meeting.
Noreco was Norway’s second largest oil and gas company in manufacturing, but was affected by falling oil prices during the economic crisis. The company suffered another setback after cracks were found in one of its oil platforms in 2009. In 2018, it lost a $ 470m lawsuit filed against 20 insurance companies that were expected to pay for the cracks.
But at the end of the same year Taconic, Kite Lake, CQS and York helped fund Noreco’s purchase of Shell goods in Danish, making it the second largest oil and gas plant in Denmark.
Hedge Funds are now relying on the company’s forecast to double its fortune by the second half of 2023, with the help of re-establishing one of its shareholding shares in Shell.
The idea for a Noreco chair was designed to help managers increase gas, said one of the funds.
The price of Brent crude fell from $ 66 at the end of 2019 but fell below $ 20 last April when the coronavirus epidemic forced the economy to stop. However, prices have risen to $ 70 this week, the highest in two months, with traders betting on basic necessities as the economy recovers and global travel resumes.
Funds are also expected to benefit from the M&A digital sector, which also includes Chrysaor change transfer of Premier Oil at the end of last year by Waldorf Production’s to buy of North Sea resources from Cairn Energy in March.