EnQuest (LSE:ENQ), a UK company that extracts hydrocarbons in the North Sea, was a very strong name for the portfolio for the year but declined in the quarter. Weakness in the bonds reflected concerns about funding for a large project that is expected to commence production in 2017. We believe that EnQuest is able to fully fund the final development of this project, which is expected to signifi-cantly reduce its cash cost per barrel.
From First Eagle High Yield Fund third-quarter 2016 commentary.
