HFO Investments Just Sold INDO Stock. Here’s Why.

Shares of Indonesia Energy (NYSEMKT:INDO) have been in the spotlight in recent weeks as a beneficiary of the Russian invasion of Ukraine and as a short-squeeze target. On March 7, INDO stock surged to a 52-week high of $86.99. Since then, the company has experienced a steady decline, with shares currently trading in the low $20 range. Furthermore, the oil and gas company is ranked No. 11 on Fintel’s list of most shorted stocks. Indonesia Energy has a short interest as a percentage of float of 24.59%, setting the stock up for a potential short squeeze. However, an investment group based in Jakarta, Indonesia, is now selling INDO stock.

petrochemical plant in night time with reflection over the river, Indonesia.
Source: arhendrix / Shutterstock

HFO Investment Group Buys INDO Stock

Based on an amended 13D filing received by the U.S. Securities and Exchange Commission (SEC) on March 25, HFO Investment Group owns 447,778 shares of Indonesia Energy. The share amount translates to a 5.85% ownership stake. In addition, the 13D form implies that HFO sold 200,000 shares. In the last amended 13D form that HFO had filed, it owned 647,778 shares of INDO stock.

It should be noted that Wan-Yu Huang, who jointly owns the 447,778 shares along with HFO, is related to an executive of Indonesia Energy. In the footnotes of the most recent 13D from, it states that “Ms. Huang is the adult sister of James J. Huang, the Chief Investment Officer and a director of the Issuer. Mr. Huang has no voting or dispositive control over the shares held by HFO.”

So, why did HFO make this sale? While institutional investors are not required to disclose their sale reason, the firm may be selling to take advantage of the recent spike in price. INDO stock is up more than 650% since the start of 2022.

Who Else Is Betting Big on Indonesia Energy?

Analyzing institutional ownership is important because these large funds provide liquidity and support for stocks. However, Indonesia does not seem to be popular with institutional investors.

There are only two funds who own INDO stock in their portfolios as of Q4: HFO and Advisor Group Holdings. The latter holds an unimpressive 10 shares. As of Q3, famed hedge fund Renaissance Technologies had owned 17,800 shares. All of these shares were sold during Q4.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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