market folly

In a 13G filed with the SEC recently, Mexican businessman Carlos Slim has disclosed a 7.64% ownership stake in Bronco Drilling (BRNC). He now owns 2,200,000 shares of the company.

Carlos Slim is a well-known Mexican businessman who amassed his wealth through telecom. He is known for his association with America Movil (AMX), Telcel, and Telefonos de Mexico (TMX) and was the second richest man in the world as of 2008.

Taken from Google Finance, Bronco Drilling "provides contract land drilling and workover services to oil and natural gas exploration and production companies. As of February 29, 2008, the Company owned a fleet of 56 land drilling rigs, of which 45 were marketed and 11 were held in inventory. Bronco also owned a fleet of 59 workover rigs, of which 49 were operating and 10 were in the process of being manufactured. The Company also owned a fleet of 70 trucks used to transport its rigs."

Carlos joins the ranks of many other investors that have taken advantage of the market volatility to increase/establish stakes in companies. Other recent action includes hedge fund Jana Partners taking a stake in Convergys (CVG), Blue Ridge Capital increasing their stake in Millipore (MIL), and Tremblant Capital establishing a stake in Advanced Medical Optics (EYE), among others.