Nomura Small Cap Value Fund on Gulfport Energy Corporation
Thesis
Gulfport is a natural gas exploration and production company focused on the Utica and Marcellus shale formations. The shares were pressured by natural gas weakness and the resignation of the prior CEO. The fund maintained the position after Domenic 'Nick' Dell'Osso Jr. was appointed CEO, citing his extensive energy experience. The fund believes the stock can re-rate once the new leadership team's plan is clearly articulated to investors.
“We maintained the Fund’s position in Gulfport Energy during the quarter as we believe it is well positioned to re-rate”
Key risks
- Natural gas weakness
- Leadership transition following the prior CEO's resignation