Hedge Fund Manager Invests Heavily in Chesapeake – Why?

[Ulrik]

Hedge fund manager Mohnish Pabrai is a huge Warren Buffett fan who humbly credits his rise to riches largely to his study of Berkshire Hathaway’s value investing strategies.

Pabrai tripled his investment in Chesapeake during the third quarter, a move that made the oil and gas production company about 20% of his fund’s portfolio.

It’s now the third largest holding in Pabrai Investments, behind Bank of America and Citigroup and just ahead of General Motors and Goldman Sachs Group.

Chesapeake sticks out in that list. The banks and the car company are the sorts of relatively stable, dividend-paying companies all value investors peruse for potential.

What does Pabrai know that we don’t?

[Seabastian.Smith]

Carl Icahn has also upped his stake in Cheasapeake. There really could be something here that the rest of us are missing.

[brixton6393]

Great Company. superb management team, Key in America's quest for energy Independence, Very good to our troops, impeccable charitable network, lots of giving, lots of caring. My pick for top earnings in Energy. Had an outstanding third quarter in 2012, will be a "force of nature" financially in 2013..
I personally worked with the Denver CO. Office a few years back (17th street wells Fargo Center)..

[GeoffP]

Brave move - does anyone have any links to recent reports on the company? I did fairly well on them in 2011 - but the recent troubles have scared me and quite a few others away. Also with nat gas prices at this level i'm not sure this is a stock i'd be getting involved in right now. Sure the wellhead price is different to what you and I are charged - but it just doesn't seem a good trade right now.

[Ulrik]

http://www.insidermonkey.com/blog/ch...rebound-29869/

[GeoffP]

Interesting - thanks Ulrik - not for me though this one.