Why a Fund Slashed Its Chord Energy Stake by 80% as the Stock Sits 50% Below Its Peak

Florida-based Kore Advisors reduced its stake in Chord Energy Corporation (NASDAQ:CHRD) by 34,000 shares in the third quarter, contributing to a position value decrease of $3.26 million, according to a November 14 SEC filing.

What Happened

Kore Advisors LP trimmed its allocation to Chord Energy Corporation (NASDAQ:CHRD), selling 34,000 shares during the third quarter. The change, disclosed in a Securities and Exchange Commission (SEC) filing dated November 14, brought the fund’s holdings down to 14,000 shares worth $1.39 million as of September 30.

What Else to Know

The fund’s CHRD position now represents 1.59% of 13F AUM after this sell action.

Top holdings after the filing:

• NYSE:UP: $31.29 million (35.8% of AUM)
• NYSE:GEO: $14.78 million (16.9% of AUM)
• NYSE:CRGY: $13.19 million (15.1% of AUM)
• NYSE:WOLF: $9.70 million (11.1% of AUM)
• NYSE:AR: $7.01 million (8.0% of AUM)

As of Wednesday, CHRD shares were priced at $90.91, down 20% over the past year and well underperforming the S&P 500, which is up about 15% in the same period. The position was previously 7.2% of the fund's AUM as of the prior quarter.

Company Overview

Company Snapshot

• Chord Energy Corporation produces and sells crude oil, natural gas, and natural gas liquids, primarily from operations in the Williston Basin.
• The company generates revenue through exploration, development, and extraction of hydrocarbons, with a focus on maximizing production efficiency and asset returns.
• It serves energy marketers, refiners, and industrial customers seeking a reliable oil and gas supply in the U.S. market.

Chord Energy Corporation is an independent exploration and production company focused on oil and natural gas development in the Williston Basin.

Foolish Take

The move here sends an interesting signal about the fund’s conviction in a volatile corner of the energy market. Chord Energy has delivered operationally. In the third quarter, oil volumes beat the midpoint of guidance, capital spending came in below plan, and the company generated $218.6 million in adjusted free cash flow while returning 69% of that to shareholders through dividends and buybacks. On paper, that is exactly what long-term investors say they want.

The problem is timing and exposure. Even with solid execution, Chord’s stock is down more than 50% from last year’s peak and roughly 20% over the past year, reflecting how quickly commodity prices and sentiment can overwhelm fundamentals. By trimming the position from a meaningful allocation to just 1.6% of assets, the fund is effectively reclassifying Chord from a core bet to a tactical holding.

That shift stands out when viewed against the rest of the portfolio, which remains concentrated in higher-conviction names. Chord still offers shareholder returns and operational leverage, but this move suggests the risk-reward no longer justifies oversized exposure. For long-term investors, the takeaway is that even well-run energy companies can demand disciplined position sizing when volatility, not execution, becomes the dominant driver of returns.

Glossary

13F reportable assets under management (AUM): The total value of securities a fund must disclose quarterly to the SEC on Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Position: The amount of a particular security or asset held by an investor or fund.
Dividend yield: Annual dividends paid by a company divided by its share price, expressed as a percentage.
Exploration and production company: A business focused on finding and extracting oil and natural gas resources.
Williston Basin: A major oil- and gas-producing geological region in the northern United States.
Hydrocarbons: Organic compounds, such as oil and natural gas, made of hydrogen and carbon atoms.
TTM: The 12-month period ending with the most recent quarterly report.
Quarter: A three-month period used by companies to report financial performance, typically ending in March, June, September, or December.
Allocation: The portion of a fund's capital invested in a particular asset or security.
Top holdings: The largest individual investments in a fund's portfolio, ranked by value.
Independent company: A firm not controlled by a larger parent corporation, operating on its own in its industry.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Wolfspeed. The Motley Fool has a disclosure policy.