At Insider Monkey, we have gone through our database of 13F filings and determined which companies in different industries and sectors were the most popular among hedge funds and other large investors for the second quarter of 2012. Popularity among hedge funds might not be the best single factor to consider when investing in different stocks, but a list of top picks can be a good source of ideas that investors can then research further. Read on to see the full top 10 holdings in the energy sector or compare them to last quarter's top ten picks.
Anadarko Petroleum Corporation (NYSE:APC). Anadarko was the most common pick among the funds in our database, with 54 funds owning shares at the end of June. This was the same figure that we had for the first quarter, and so Anadarko rose from the #3 spot to #1 as El Paso was acquired and BP lost its luster among investors. Anadarko produces natural gas, crude oil, and natural gas liquids primarily in the U.S., and trades at 16 times expected earnings for 2013. Billionaire Ken Griffin’s Citadel Investment Group increased its position 53% during the quarter.
Exxon Mobil Corporation (NYSE:XOM). 48 funds owned Exxon Mobil at the end of the second quarter, down from 51 three months earlier. The oil and gas supergiant, with a market cap of $400 billion, trades at only 9 times trailing earnings. Adage Capital Management reported a 6.2 million share position; Exxon Mobil was the fund’s second largest position.
Schlumberger Limited (NYSE:SLB). Hedge funds also lost some interest in oilfield services company Schlumberger over the course of the quarter, with the 46 funds reporting positions for the second quarter down from 52. Bucking the trend, Viking Global nearly tripled its position in the company. Schlumberger trades at 18 times trailing earnings.
Occidental Petroleum Corporation (NYSE:OXY). 45 funds owned Occidental Petroleum at the end of March, and three months later that figure had held steady. Occidental engages in oil and gas exploration and production worldwide. Relational Investors cut its stake but remained the top holder of the stock in our database.
National-Oilwell Varco, Inc. (NYSE:NOV). Like at Occidental, National Oilwell finished the second quarter with the same number of 13F holders as it started. Here, that number was 42. The company provides oilfield equipment such as drilling rigs and pipes. Berkshire Hathaway initiated a position in the company during the second quarter.
BP plc (NYSE:BP). Hedge funds abandoned BP during the quarter, and the oil company finished June in the portfolios of 41 filers in our database. This was down from 56 at the end of March, which had made it the second most popular energy stock. The Baupost Group, however, increased its position by 44% and apparently still believes that the trailing P/E of 8 is too low, especially considering the dividend yield of 4.6%.
Halliburton Company (NYSE:HAL). Like fellow oilfield services company Schlumberger, large investors pulled out of Halliburton over the course of the quarter. 41 funds, including Valueact Capital, owned shares at the end of the quarter, down from 48. Halliburton trades at 10 times trailing earnings.
Devon Energy Corporation (NYSE:DVN). 40 funds had positions in Devon Energy at the end of June, down from 48 at the end of March. Like Halliburton, Devon’s trailing P/E is 10; unlike Halliburton, it is an exploration and production company with a focus on the onshore U.S. Greenhaven Associates was one of the largest 13F investors in the company.
EOG Resources, Inc. (NYSE:EOG). EOG was the only energy company on this list to see increased hedge fund interest during the second quarter, going from 36 hedge fund positions to 39. EOG is an integrated oil and gas company which is particularly notable for its positioning in Texas’s Eagle Ford Shale. Diamond Hill Capital increased its position 48% during the second quarter.
Chevron Corporation (NYSE:CVX). Another supermajor, with a market cap of over $200 billion, Chevron finished the period in the portfolio of 39 hedge funds, down from 43 at the end of the first quarter. Chevron trades at only 8 times trailing earnings and 9 times forward earnings estimates. Cliff Asness’s AQR Capital Management was one of the investors in the company.