Commodity Fund Manager Turns $2 Million Profit on Bazan Stock Re-purchase
Translated & summarized from Globes by baba
The Commodity Fund, managed by Jeremy Blank, has profited approximately 2 million shekels after repurchasing Bazan refinery shares following a price dip. The fund had previously sold shares for a large profit but re-entered the market after an environmental incident caused Bazan's stock to fall. The repurchase has already yielded significant returns as the stock recovered, contributing to Bazan's overall 140% stock increase this year, driven by global refining margin hikes.
The story in 5 lines · by baba
- Commodity Fund manager Jeremy Blank profited 2 million shekels from a recent Bazan stock repurchase.
- The fund re-entered Bazan after an environmental incident caused the stock to drop.
- Bazan's stock has risen nearly 140% this year, reaching a 6.5 billion shekel valuation.
- Global refining margins have increased due to disruptions in Russian and Middle Eastern refineries.
- Jeremy Blank previously facilitated Bazan's acquisition of Cantium from York Capital.
Just weeks after selling its stake for a significant profit, the Commodity Fund, managed by Jeremy Blank, has repurchased shares in the Bazan refinery company following a price drop. The decline was attributed to an unusual pollution incident at Bazan's facilities, which led to school closures and resident evacuations. The fund acquired approximately 23 million shekels worth of shares, regaining a stake of about 5.3% valued at 342 million shekels. This move has already proven profitable, with an 8% stock increase in two days yielding an estimated 2 million shekel gain for the fund. Previously, Commodity Fund had sold about a quarter of its Bazan shares for 100 million shekels, ceasing to be a major stakeholder. This recent transaction adds to the fund's substantial gains, as it had previously invested around 170 million shekels in Bazan stock last year, which has since surged over 150%.
Blank, who previously managed York Capital's Israeli operations, has a history of successful investments. Last year, he reportedly acted as an intermediary when Bazan acquired a controlling stake in the American oil company Cantium from York Capital for $100 million. Sources within Bazan described Blank as instrumental in this deal, having facilitated York Capital's original acquisition of Cantium nearly a decade prior. The Commodity Fund's gains coincide with Bazan's stock price nearly doubling since the start of the year, reaching a valuation of approximately 6.5 billion shekels. This surge is driven by rising refining margins, the gap between crude oil prices and the selling prices of refined products like gasoline and diesel. These margins have increased due to disruptions in Russian and Persian Gulf refinery production caused by Ukrainian and Iranian attacks, respectively, as well as heightened demand for fuel from increased military and shipping activity amid geopolitical tensions.
