One Fund Just Dumped $13 Million in This Offshore Drilling Stock — Here's What Long-Term Investors Should Know
Key Points
New York City-based Findell Capital Management sold 300,000 shares of Valaris Limited for an estimated $12.6 million in the third quarter.
The move marked an exit for Findell, which reported holding no shares of Valaris at quarter-end.
The position accounted for 6.2% of the fund’s AUM in the previous quarter.
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On November 14, New York City-based Findell Capital Management disclosed a complete exit from Valaris Limited (NYSE:VAL), reducing its position by 300,000 shares in a move estimated at $12.6 million.
What Happened
In a quarterly Form 13-F filed with the Securities and Exchange Commission on November 14, Findell Capital Management reported selling its entire holding in Valaris Limited (NYSE:VAL). The move represented an estimated $12.6 million change in portfolio value based on the reported share count reduction and prevailing average prices for the period.
What Else to Know
Top holdings after the filing:
- NASDAQ:LQDA: $64.4 million (29.4% of AUM)
- NASDAQ:ESTA: $53.1 million (24.2% of AUM)
- NASDAQ:OPRT: $15.8 million (7.2% of AUM)
- NASDAQ:ODP: $14.9 million (6.8% of AUM)
- NYSE:GEO: $11.5 million (5.2% of AUM)
As of Wednesday's market close, shares of Valaris were priced at $55.94, up 22% over the past year and outperforming the S&P 500's 13% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close Wednesday) | $55.94 |
| Market capitalization | $4 billion |
| Revenue (TTM) | $2.4 billion |
| Net income (TTM) | $399 million |
Company Snapshot
Valaris Limited is a leading provider of offshore drilling services, leveraging a diverse and modern rig fleet to support complex exploration and production activities for the global energy sector. It serves international, government-owned, and independent oil and gas companies across regions such as the Gulf of Mexico, North Sea, Middle East, West Africa, Australia, and Southeast Asia. The company’s scale and geographic reach enable it to serve a broad range of customers, from major integrated oil companies to national oil firms and independents. Strategic focus on operational efficiency and fleet versatility positions Valaris to capitalize on demand in key offshore markets worldwide.
Foolish Take
Long-term investors should view Findell Capital’s full exit from Valaris as a likely signal about how the fund is rotating exposure across cyclical and high-beta names. The firm has been leaning into small- and mid-cap growth stories—adding Turning Point Brands and Mineralys Therapeutics—while stepping away from this asset-heavy business in offshore drilling. That shift matters in a sector where contract visibility is improving while valuations have already rerated meaningfully.
Valaris just delivered another strong quarter, generating $187 million in net income (up from $114 million in the second quarter) and $163 million in adjusted EBITDA, reflecting disciplined operations and robust demand for deepwater capacity. CEO Anton Dibowitz emphasized that “all four of our active drillships with near-term availability are now contracted for work beginning next year." Revenue reached $596 million, and the company ended the quarter with $676 million in cash—evidence of the durability of its recovery. Shares are up 22% over the past year and about 90% since April lows, helping the stock easily outpace the S&P 500’s 13% gain. For Findell, the complete exit frees capital for higher-conviction ideas elsewhere in the portfolio, even as Valaris continues to execute.
Glossary
13F reportable AUM: Assets under management that must be disclosed in quarterly SEC Form 13F filings by institutional investment managers.
Complete exit: When an investor sells all shares of a particular holding, reducing their position to zero.
Stake: The proportion or value of ownership an investor holds in a company or asset.
Quarterly Form 13-F: A regulatory filing by institutional investors listing their equity holdings at the end of each quarter.
Drillship: A ship equipped for offshore drilling of oil and gas wells, capable of operating in deep water.
Semisubmersible: A type of floating offshore drilling rig partially submerged for stability during drilling operations.
Jackup rig: A mobile offshore drilling unit with legs that can be raised or lowered to the seafloor for stability.
Operational efficiency: The ability of a company to deliver products or services in the most cost-effective manner without sacrificing quality.
Fleet versatility: The range and adaptability of a company's equipment or vehicles to perform various tasks or operate in different environments.
TTM: The 12-month period ending with the most recent quarterly report.
Integrated oil companies: Firms involved in multiple stages of the oil industry, including exploration, production, refining, and distribution.
National oil firms: Oil and gas companies owned or controlled by a national government.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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