Hedge Fund Manager Sells Stake in BAZAN for $27 Million

Community, a hedge fund managed by Jeremy Blank, is set to complete a profitable exit from its investment in BAZAN (The Haifa Refineries). Over recent weeks, the fund sold shares worth approximately NIS 100 million (about $27 million), ceasing to be a significant stakeholder in the company. This move comes nearly two years after Community first disclosed its holding in BAZAN, whose stock has surged by nearly 190% in the past year.

The fund sold about a quarter of its BAZAN shares, representing 1.7% of the company's equity, in several stock market transactions. Following these sales, Community retains holdings valued at approximately NIS 350 million (about $94 million), representing 4.9% of BAZAN. No longer being a significant stakeholder may allow the fund to sell its remaining shares without public disclosure.

This sale represents a substantial value realization for Community, which acquired BAZAN shares opportunistically last year, becoming a significant holder. Since then, BAZAN's stock price has soared, generating an estimated profit of around NIS 250 million (about $67 million) for the fund on its investment, largely unrealized until now.

Blank, who previously led the US hedge fund York's operations in Israel, has seen significant gains from his BAZAN investment. Last year, he also brokered a deal where BAZAN acquired a controlling stake in the US oil company Cantium from York. BAZAN's stock has risen about 150% this year to a market value of approximately NIS 7 billion (about $1.9 billion).

The surge in BAZAN's stock is attributed to increased refining margins, driven by disruptions to refineries in Russia due to Ukrainian attacks and similar impacts on refineries in the Persian Gulf from Iranian actions. Higher demand from increased military and commercial shipping in the region has also contributed to the rise in demand for refined products.