market folly

Dallas based hedge fund Carlson Capital filed an amended 13D and a Form 4 with the SEC regarding shares of Cano Petroleum (CFW). Per the filings, we see that the hedge fund sold 800,000 shares of CFW on October 18th at a price of $0.4575. After the transaction, Carlson Capital is left holding 4,805,818 Cano Petroelum shares and this marks a 14% reduction in their position size.

According to the 13D filing, this now translates into a 10.6% ownership stake in the company. Carlson originally filed a 13D back in August of 2008. Carlson recently sold the majority of shares in their Black Diamond Relative Value Offshore fund and their Double Black Diamond Offshore fund. Carlson Capital is the largest shareholder in Cano Petroleum, followed by Sage Asset Management, Goldman Sachs, and Soros Fund Management.

In terms of other portfolio activity from Carlson, we've detailed their activist position in Hot Topic (HOTT) as well.

Taken from Google Finance, Cano Petroleum is "an independent oil and natural gas company. The Company’s assets are located onshore United States in Texas, New Mexico and Oklahoma. As of September 22, 2010, Cano had 18 wells containing multiple completions."