Chesapeake (CHK) Abandoned by Major Investment Funds

According to regulatory filings, Chesapeake Energy Corp. (NYSE: CHK) has had a number of investment funds funds sell off huge portions of their stakes in the company.

Chesapeake has been under fire and pressure for a long time on the outrageous amount of debt it has incurred, resulting in the need to either sell of quality assets at below market levels, or to tap into more debt in hopes of riding out the natural gas market in hopes prices will rise, or colder winters are on the horizon.

Many funds sold of all, or close to all of their holdings in Chesapeake, including Highbridge Capital Management LLC, which sold all its holdings in the company; Two Sigma Investments LLC sold 98 percent of its holdings, while S.A.C. Capital Advisors LP sold off 91 percent of the shares it held in the company.

Others selling off over half of their stakes in Chesapeake include Millennium Management LLC, which sold 86 percent of their stake in the natural gas giant; OZ Management LLC slashed its holdings by 64 percent; Fidelity Management & Research Co. cut the amount of shares it held in Chesapeake by 59 percent; and Adage Capital Advisors LLC got rid of 57 percent of the shares it held in Chesapeake.

Chesapeake closed at $13.58, down $0.46, or 3.28 percent.