The Bakken Fund

The latest update on the Bakken Fund is below.    For the FAQ,  scroll to the bottom of the page

The Bakken Fund is constructed as an index fund of 10 stocks with Bakken exposure. Each stock gets a 10% weighting (total 100%) regardless of market cap. We have included micro caps, small caps, mid caps and large caps in the Bakken Fund to give diverse exposure to both risk and the Bakken region. After extremely solid years in 2009 (180% gain) and 2010 (64% gain) we have pulled into positive territory for the year (as of 6/30/11) with a 5.28% gain.   Given the roller coaster ride the economy has seen this year,  we don’t expect the fund to sit still through the remainder of the year.     We expect Bakken plays to end the year on an up note and outperform non-Bakken plays.    Many of the pure plays are off 30% from their 2011 highs and could bounce in the short term.

BAKKEN FUND 2008   RETURN: -43.34%  
         
Company Symbol Price 1/1 Price 12/31 Return
Brigham Exploration BEXP 7.3 3.13 -57.12%
Continental Resources CLR 26.13 20.71 -20.74%
Whiting Oil & Gas WLL 28.83 16.73 -41.97%
Northern Oil & Gas NOG 6.95 2.6 -62.59%
Kodiak Oil & Gas KOG 2.2 0.31 -85.91%
MDU Resources MDU 24.86 19.87 -20.07%
EOG Resources EOG 87.3 65.44 -25.04%
NewField Exploration NFX 52.7 19.75 -62.52%
GEO Resources GEOI 9 8.69 -3.44%
Marathon Oil MRO 55.21 25.41 -53.98%
Total -43.34%
BAKKEN FUND 2009   RETURN: 180.49%  
         
Company Symbol Price 1/1 Price 12/31 Return
Brigham Exploration BEXP 3.13 13.55 332.91%
Continental Resources CLR 20.71 42.89 107.10%
Whiting Oil & Gas WLL 16.73 35.72 113.51%
Northern Oil & Gas NOG 2.6 11.84 355.38%
Kodiak Oil & Gas KOG 0.31 2.22 616.13%
MDU Resources MDU 19.87 22.51 13.29%
EOG Resources EOG 65.44 96.42 47.34%
NewField Exploration NFX 19.75 48.23 144.20%
GEO Resources GEOI 8.69 13.66 57.19%
Marathon Oil MRO 25.41 29.94 17.83%
Total 180.49%
BAKKEN FUND 2010   RETURN 64.72%  
         
Company Symbol Price 1/1 Price 12/31 Return
Brigham Exploration BEXP 13.55 27.24 101.03%
Continental Resources CLR 42.89 58.85 37.21%
Whiting Oil & Gas WLL 35.72 58.6 64.05%
Northern Oil & Gas NOG 11.84 27.21 129.81%
Kodiak Oil & Gas KOG 2.22 6.6 197.30%
MDU Resources MDU 22.51 19.97 -11.28%
EOG Resources EOG 96.42 91.13 -5.49%
NewField Exploration NFX 48.23 72.11 49.51%
GEO Resources GEOI 13.66 22.21 62.59%
Marathon Oil MRO 29.94 36.65 22.41%
Total 64.72%
BAKKEN FUND 2011   RETURN +5.28%  
(Through 6/30/11)        
Company Symbol Price 1/1 Price 6/30 Return
Brigham Exploration BEXP 27.24 29.93 9.88%
Continental Resources CLR 58.85 64.91 10.30%
Whiting Oil & Gas WLL 58.6 56.91 -2.88%
Northern Oil & Gas NOG 27.21 22.15 -18.60%
Kodiak Oil & Gas KOG 6.6 5.77 -12.58%
MDU Resources MDU 19.97 22.5 12.67%
EOG Resources EOG 91.13 104.55 14.73%
NewField Exploration NFX 72.11 68.02 -5.67%
GEO Resources GEOI 22.21 22.49 1.26%
Marathon Oil MRO 36.65 52.68 43.74%
Total 5.28%

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The Bakken Fund FAQ

Question: What is the ticker symbol for the Bakken Fund and how can I invest?

Answer: Unfortunately, The Bakken Fund is a “virtual” fund and you cannot currently invest. We’ll let our readers know if an investment firm starts something similar

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Question: Which companies are included in the Bakken Fund?

Answer: We concentrate on publicly traded companies that have significant exposure in the Bakken Region/Williston Basin.

Question: What investment strategy do you use for the Bakken Fund?

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Answer: We do not trade in and out of the Bakken Fund, it is simply an index fund with 10 constituents

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Question: Why do you not include canadian companies in your fund?

Answer: We currently do not include canadian companies due to limitations with tracking Canadian companies. We will consider Canadian companies as soon as it is possible to do so.

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Question: What kind of returns are you expecting with the Bakken Fund?

Answer: We believe the Bakken Fund will outperform other Oil & Gas funds over the next 10 years due to the explosive growth in the Bakken region. Its a simple thesis, but more wells, a greater boepd and advances in drilling will ultimately lead to more production and revenue for companies operating in the Bakken region vs their non-Bakken counterparts. Our target for 2011 is 15% but it is impossible to predict whether the index will meet this objective.

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