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The Bakken Fund
Posted by bakkenexpertThe latest update on the Bakken Fund is below. For the FAQ, scroll to the bottom of the page
May 12th, 2010
As you have noticed, we haven’t been reporting much over the last few weeks. Part of the reason was around the Dr Jekll and Mr Hyde persona the market has taken on lately for which we were on the sidelines in cash. The dust hasn’t fully settled but hopefully the occurrences of the 1000 point “flash crashes” over the next few weeks has passed. Surprisingly, through the overall market correction our Bakken plays held their ground for the most part. We exited our positions about 3 weeks ago expecting market turmoil. We got the turmoil we expected, but investors definitely didn’t abandon their Bakken plays. Had we held the positions, we would be roughly at the same point we are today. We currently stand up 26.2% since inception back in February and are currently 100% in cash with no open positions. We are looking for targeted opportunities to get back in the market, but will do so with caution and build positions. Some of the stocks with the highest forward PE’s such as Brigham Exploration and American Oil & Gas were the ones that held up the best with minimal if any drops in pps. Below is a chart that shows us exiting all positions before the market correction but still beating the Dow and Nasdaq while being 100% in cash
Bakken Fund NAV: $12.62 YTD Return: 26.2%
April 5th, 2010
As oil topped $86 a barrel today our Bakken Fund hit a 30.6% return in a little more than 2 months of existence. The amazing run has exceeded even our optimistic outlook on stocks that operate in the Bakken region. Oil has gone up about 10% in the last 2 months and our plays have benefited greatly from stable oil prices. The Bakken Fund is outperforming the Dow & Nasdaq by about a 3 to 1 margin since inception. Our original rationale was to trade in and out of stocks in the Bakken Fund, but given the uptrend, we have not made any changes to the fund. Small Cap stocks in the region continue to forge ahead. AEZ (AEZ: 7.28 0.00%) continues to lead the way with an amazing 70% gain and KOG (KOG: 2.55 0.00%) is not far behind with a 62% gain. We could pack it in for the rest of the year at this point and most likely beat all major indexes for all of 2010 but what fun would that be? Lets see how far we can ride this train.
Bakken Fund NAV: $13.06 YTD Return: 30.6%
| Symbol | Price | Shares | Value | % of Fund | Gains | Today | Return |
| AEZ | $7.12 | 23,765 | $169,206.80 | 12.95% | $71,827.26 | 4.09% | 70.65% |
| KOG | $3.73 | 15,985 | $59,624.05 | 4.56% | $22,869.37 | 6.57% | 62.22% |
| GEOI | $16.89 | 8,698 | $146,909.22 | 11.25% | $45,718.68 | 8.62% | 45.18% |
| NOG | $17.38 | 8,090 | $140,604.20 | 10.76% | $40,481.07 | 4.07% | 40.43% |
| WLL | $86.36 | 1,390 | $120,040.40 | 9.19% | $32,763.81 | 2.58% | 32.60% |
| BEXP | $17.96 | 6,710 | $120,511.60 | 9.22% | $29,158.19 | 4.91% | 29.13% |
| CLR | $45.38 | 2,540 | $115,265.20 | 8.82% | $22,439.20 | 2.28% | 22.34% |
| SM | $37.90 | 3,020 | $114,458.00 | 8.76% | $21,172.31 | 3.38% | 21.24% |
| MRO | $32.42 | 3,395 | $110,065.90 | 8.42% | $15,177.26 | 1.03% | 15.10% |
| EOG | $97.77 | 1,000 | $97,770.00 | 7.48% | $7,421.50 | 2.29% | 7.45% |
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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 you know if one of the investment houses picks it up. I do provide transparency in terms of trading in and out of the fund. We are using the tools at Marketocracy to track the fund and compare performance to indexes such as the Dow, Nasdaq and S&P 500.
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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 trade in and out of our constituent stocks as we see technical tops and bottoms forming. On average we don’t expect to trade out of a given stock more than 6 times in a calendar year
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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 Marketocracy. We will add qualified 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 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 2010 is 20-25% but it is impossible to predict whether we will meet this objective.
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