Here's the $37 Million Energy Bet That One Fund Dumped as Shares Sit 50% Below Last Year’s Highs

As of September 30, New York City-based SIR Capital Management reported in an SEC filing that it sold its entire position in Chord Energy Corporation (CHRD), representing a $36.57 million reduction.

What Happened

SIR Capital Management reported a complete exit from its holding in Chord Energy Corporation (NASDAQ:CHRD), according to a filing with the Securities and Exchange Commission dated November 14. The fund sold all 377,585 shares it previously held, with the sale valued at $36.57 million based on average quarterly prices. The position accounted for 3.26% of the fund's assets last quarter.

What Else to Know

Top holdings after the filing:

• NASDAQ: VNOM: $82.04 million (7.36% of AUM)
• NYSE: PR: $62.83 million (5.64% of AUM)
• NYSE: KMI: $51.55 million (4.62% of AUM)
• NYSE: DVN: $51.18 million (4.59% of AUM)
• NYSE: OKE: $47.79 million (4.29% 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 instead up about 15% in the same period.

Company Overview

Company Snapshot

• Chord Energy Corporation produces and sells crude oil, natural gas, and natural gas liquids primarily from assets in the Williston Basin.
• The company generates revenue through the exploration, development, and sale of hydrocarbons, leveraging operational expertise in upstream energy production.
• It serves customers in the energy sector, including refiners, marketers, and utility companies seeking reliable oil and gas supply in North America.

Chord Energy Corporation is an independent oil and gas exploration and production company focused on the Williston Basin. Its business model centers on efficient resource extraction and disciplined capital allocation to support long-term growth.

Foolish Take

Importantly, this was a full exit, not a trim, and it comes after a year in which the stock has lost roughly half its value from prior highs, even as the broader market pushed forward. That contrast is hard to overlook. Operationally, the company isn’t broken. In the most recent quarter, it delivered solid production above the midpoint of guidance, generated more than $575 million in adjusted EBITDA, and returned a meaningful share of free cash flow to shareholders through dividends and buybacks. The balance sheet remains liquid, and management continues to emphasize capital discipline and efficiency gains. On fundamentals alone, this does not look like a distressed asset.

But portfolio construction matters. For an energy-focused fund, capital is constantly being reallocated toward names with the best risk-adjusted upside. Exiting entirely suggests the opportunity cost of staying invested has grown too high, especially given ongoing commodity volatility and a stock that has struggled to regain momentum.

Glossary

13F assets: Securities and assets that institutional investment managers must report quarterly to the SEC on Form 13F.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm on behalf of clients.
Position: The amount of a particular security or investment held by a fund or investor.
Stake: The ownership interest or share held in a company or asset by an investor or fund.
Quarterly report: A financial statement released every three months, detailing a company's or fund's performance and holdings.
Upstream energy production: The sector of the energy industry focused on exploring for and producing oil and natural gas.
Williston Basin: A large sedimentary basin in North America known for significant oil and gas reserves and production.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan. The Motley Fool recommends Oneok and Viper Energy. The Motley Fool has a disclosure policy.