Hedge Fund Sells Bazan Stake for $27 Million After 190% Stock Surge

Community, a hedge fund managed by Jeremy Blank, is set to complete a profitable exit from its investment in Bazan Group, an Israeli oil refinery. Over recent weeks, the fund sold Bazan shares worth approximately NIS 100 million (about $27 million), ceasing to be a significant shareholder in the company. This move comes nearly two years after Community first disclosed its stake in Bazan, whose stock has surged by almost 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 $95 million), or 4.9% of Bazan. As Community is no longer considered a controlling interest, it may be able to sell its remaining shares without public disclosure.

This sale represents a significant value realization for Community, which acquired Bazan shares opportunistically last year, becoming a major stakeholder. Since those purchases, Bazan's stock price has climbed, yielding Community an estimated paper profit of around NIS 250 million (about $68 million) on its investment.

Blank, who previously led the U.S. hedge fund York's operations in Israel, has seen substantial gains from his Bazan investment. The stock's rise is attributed to a surge in refining margins, the difference between the cost of crude oil and the selling price of refined products like gasoline and jet fuel. This increase is driven by disruptions to refinery capacity in Russia due to Ukrainian attacks and similar impacts on refineries in the Persian Gulf from Iranian actions. Additionally, increased military and commercial air traffic in the region has boosted demand for diesel and jet fuel, further supporting prices.