SM Energy Co. (SM) is an independent E&P company with operations that are primarily focused on shale oil fields in South Texas and North Dakota. The company’s shares fell by 50% during the quarter amid the rout in oil and gas prices. Despite the fact that SM has one of the stronger balance sheets in the sector and that changes in its well completion practices are yielding higher per well productivity and returns, the shares seemed to succumb to a tsunami of selling in the quarter.We sold our investment position.
From Ron Baron (Trades, Portfolio)’s Baron Growth Fund Q4 2014 Quarterly Report.
