A review of the fund’s $2.6 billion portfolio and trading activity in Q4’17.
Riverstone is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre, Jr. with approximately $37 billion of capital raised. However, discretionary assets under management (AUM) stands at only of $27.2 billion (Form ADV from 2017-06-30). Both Lapeyre and Leuschen previously worked in Goldman Sachs’ Global Energy & Power group.
According to Riverstone’s website, the fund conducts buyout and growth capital investments in the exploration & production, midstream, oilfield services, power, and renewable sectors of the energy industry.
Riverstone Holdings LLC’s Latest Form 13F Filing
On February 7th, 2018, David Leuschen and Pierre Lapeyre’s firm Riverstone Holdings LLC filed their quarterly Form 13F regulatory filing. I reviewed the 13F filing to review holdings in Riverstone Holdings LLC’s large portfolio.
Riverstone Holdings LLC’s stock portfolio totals $2.6 billion according to the latest filing. The list value of stock holdings is down -9.2% when compared to the last quarter. As a benchmark, the S&P 500 was up 6.1% over the same period.
Quarter-over-Quarter Turnover (QoQ Turnover) measures the level of trading activity in a portfolio. Riverstone Holdings LLC’s QoQ Turnover for the latest quarter was 15.1%, so the firm appears to trade a healthy percent of its portfolio each quarter.
The Ideas section of finbox.io tracks top investors and trending investment themes. You can get the latest data on the holdings discussed below at the Riverstone Holdings page. The following table summarizes his firm’s largest holdings reported in the last filing:
|Ticker||Name||Holding ($mil)||% Of Portfolio|
|CDEV||Centennial Resource Development, Inc.||$1,791.1||69.4%|
|USAC||USA Compression Partners, LP||$404.9||15.7%|
|PEGI||Pattern Energy Group, Inc.||$158.0||6.1%|
|GOGL||Golden Ocean Group Ltd.||$88.4||3.4%|
|EPE||EP Energy Corp.||$73.8||2.9%|
|EVA||Enviva Partners, LP||$37.2||1.4%|
|NDRO||Enduro Royalty Trust||$27.1||1.0%|
The seven positions above represent 100.0% of the hedge fund’s total portfolio. Centennial Resource Development, Inc. (Nasdaq: CDEV) and USA Compression Partners, LP (NYSE: USAC) make up 85.1% of the portfolio so its performance is highly dependent on these two companies.
In addition, USA Compression is the only position that Riverstone added to in the quarter. The firm bought $2.6 million worth of stock in the quarter. On the other hand, Leuschen and Lapeyre’s fund sold $398.4 million worth of Centennial during the quarter.
Overall, Riverstone reduced its stake in three companies.
|Ticker||Name||Sold ($mil)||% Of Portfolio|
|PEGI||Pattern Energy G…||$7.0||6.1%|
Managers with more than $100 million in qualifying assets under management are required to disclose their holdings to the SEC each quarter via 13F filings. Qualifying assets include long positions in U.S. equities and ADRs, call/put options, and convertible debt securities. Shorts, cash positions, foreign investments and other assets are not included. It is important to note that these filings are due 45 days after the quarter end date. Therefore, Riverstone’s holdings above represent positions held as of December 31st and not necessarily reflective of the fund’s current stock holdings.
Author: Andy Pai
Expertise: financial modeling, mergers & acquisitions
Andy is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights:
- Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores.
- Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets.
Andy can be reached at email@example.com.
As of this writing, I did not hold a position in any of the aforementioned securities and this is not a buy or sell recommendation on any security mentioned.