Hedge Fund Segantii Bought Anadarko, Rio Tinto Shares Amid Rout

  • Firm purchased stocks in fourth quarter as oil prices plunged
  • Shares in companies down double-digits so far this year

Hedge fund Segantii Capital Management bought stakes in mining and oil exploration stocks in the fourth quarter, amid a rout in commodities that has deepened this year.

Hong Kong-based Segantii acquired a new stake of Anadarko Petroleum Corp. in the three months ended Dec. 31, buying 403,590 shares in the oil and gas exploration company valued at $19.6 million, according to regulatory filings. Segantii also bought American depository receipts of mining company Rio Tinto Plc and shares of a U.S. exchange-traded fund, the SPDR S&P Oil and Gas Exploration & Production ETF, the filings show.

Segantii, whose assets surpassed $1 billion last May, trades Asian equities and equity-linked securities with a focus on North Asia. While it’s unclear whether the hedge fund has held on to the oil-related shares it disclosed in the fourth quarter, all have tumbled this year as a selloff in commodities has deepened and investors have fled all but the safest assets.

Shares of Woodlands, Texas-based Anadarko plunged 20 percent in the fourth quarter and are down 27 percent so far in 2016. London-based Rio Tinto’s ADRs declined 14 percent in the fourth quarter and have tumbled 16 percent this year. The SPDR S&P Oil & Gas Exploration & Production ETF dropped 8 percent in the final three months of 2015 and is down another 21 percent in 2016.

Brent oil has declined 15 percent so far this year after falling 35 percent in 2015 amid a supply glut and record U.S. stockpiles. Oil has rebounded from the lowest level in more than 12 years, as speculation swirls over whether producers will act to bolster the market.

Simon Sadler, a former head of Asian equity trading at HSBC Holdings Plc, founded Segantii Capital with $26.5 million in 2007. Niral Maru, head of legal and compliance at Segantii, declined to comment on the purchases.

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