Kore Advisors Reduced Its Stake in Chord Energy by 80% as Commodity Volatility Overwhelms Fundamentals

In the third quarter, Florida-based investment fund Kore Advisors significantly reduced its stake in Chord Energy Corporation (NASDAQ: CHRD), a decision that speaks volumes about risk management in volatile energy markets. According to an SEC filing disclosed on November 14, the fund divested 34,000 shares, cutting its position from a material allocation to just 1.59% of assets under management.

The Divestment Decision

Kore Advisors liquidated a substantial portion of its Chord Energy holdings during Q3, leaving the fund with only 14,000 shares valued at approximately $1.39 million as of September 30. This reduction represented a position value decline of $3.26 million from the previous quarter—a striking reversal from when Chord represented 7.2% of the fund’s 13F reportable assets.

The timing is particularly notable given Chord’s operational track record. In Q3 alone, the oil and gas producer exceeded production guidance, came in below planned capital expenditures, and generated $218.6 million in adjusted free cash flow. The company returned 69% of that cash to shareholders through dividends and buybacks, executing precisely what long-term investors claim to want.

Solid Operations, Weak Stock Performance

Here lies the paradox: operational excellence has failed to translate into stock appreciation. As of the filing date, Chord Energy shares traded at $90.91—down more than 50% from their 52-week high and approximately 20% over the trailing 12 months. This underperformance starkly contrasts with the S&P 500’s roughly 15% gain over the same period, highlighting how commodity price movements and market sentiment can completely override fundamental execution.

The fund’s portfolio reveal shows where conviction remains concentrated. Top holdings include:

• UP (NYSE): $31.29 million (35.8% of AUM)
• GEO (NYSE): $14.78 million (16.9% of AUM)
• CRGY (NYSE): $13.19 million (15.1% of AUM)
• WOLF (NYSE): $9.70 million (11.1% of AUM)
• AR (NYSE): $7.01 million (8.0% of AUM)

By contrast, Chord Energy’s dramatically scaled-back position signals a fundamental shift in how the fund views risk-reward dynamics.

From Core Conviction to Tactical Position

The reduction reveals an important portfolio management principle: even well-executed strategies don’t justify oversized positions when volatility becomes the dominant return driver. By trimming Chord from a nearly 7% holding to under 2%, Kore Advisors reclassified the company from a core conviction play to a peripheral tactical position.

Chord Energy still offers attractive shareholder returns through its 5.7% dividend yield and operational leverage to higher oil prices. As an independent exploration and production company operating primarily in the Williston Basin, it maintains access to relatively stable, low-cost reserves. Yet these strengths apparently no longer outweigh the structural headwinds of commodity market cycles.

What Long-Term Investors Should Consider

This fund move encapsulates a broader investment truth: execution quality and fundamentals are necessary but insufficient in commodity-dependent sectors. When external forces—global oil supply dynamics, geopolitical developments, interest rate environments—shift faster than company management can respond, even strong operational performance gets overwhelmed.

For individual investors monitoring energy sector holdings, the takeaway is straightforward: position sizing discipline matters more in volatile industries than in stable growth sectors. Kore Advisors didn’t abandon Chord Energy; it simply acknowledged that reducing exposure from a major conviction play to a minor tactical allocation better matches the current risk-reward environment. That restraint, perhaps more than the divestment itself, may be the most instructive signal for long-term portfolio construction.