Guru Seth Klarman (Trades, Portfolio) attended Cornell University where he graduated with a bachelor's in 1979, and went on to graduate with an MBA from Harvard in 1982. Klarman founded The Baupost Group in 1982, an investment firm that focuses on long term value with similar investment philosophies to the legendary Benjamin Graham.Â
In the first quarter of 2016, Klarman slashed 15,337,219 shares of Bellatrix Exploration Ltd. (BXE, Financial) from his portfolio, reducing his holding by 63.93%. Klarman now owns 8,653,281 shares of the company.
Bellatrix Exploration is a Calgary, Alberta-based intermediate energy producer focused on exploration and development of light oil liquids and natural gas opportunities in the Western Canada sedimentary basin. The company is powered by a diverse asset base, focused on sustainable growth both in its people and in its properties.
Bellatrix Exploration has a market cap of $190.68 million, an enterprise value of $737.17 million, a P/B ratio of 0.31 with a quick ratio of 0.66.
According to GuruFocus, Bellatrix Exploration has a Financial Strength rating of 4/10 with a profitability and growth rating of 4/10.Â
The company also has four severe warning signs according to GuruFocus, which may have influenced Klarman's decision to remove 15,337,219 shares from his portfolio. The company’s Piotroski F-Score is 3, which is low and usually implies poor business operation. The company’s per share revenue has also been in decline over the previous three years, which is not a good sign for investors. The company's asset growth is also faster than its revenue growth. This usually indicates that a company may be becoming less efficient.
Klarman is a value investor who likes to follow Benjamin Graham's value investing principles when he’s making investment decisions. It is possible that Klarman has decided that Bellatrix Exploration is a very risky investment due to multiple warning signs within a volatile industry. Bellatrix Exploration has fallen in price to just 99 cents per share as of April 10.
Cheers to your investment success.
