Anadarko Petroleum Corporation (APC), Schlumberger Limited. (SLB) Among 5 Energy Stocks That Hedge Funds Love

After the end of each quarter hedge funds disclose their most important long stock positions at the U.S. Securities and Exchange Commission. Our research has shown that, the most popular small-cap stocks among hedge funds have outperformed the market by an average of 18 percentage points per year, same as large-cap stock picks. However, margins in these last ones are substantially smaller, but still worthy. In fact, we have accomplished returns of 69% -since August 2012- by imitating hedge fund picks.

In a previous article, we presented the five most popular technology stocks among hedge funds. In this case, we will present the top five energy picks among hedge funds; and they will probably surprise you.

The energy segment has seen considerable hedge fund activity during 2013’s third quarter. In fact, at least 60% of the -more than 300- companies that we track in these industries experienced increased “hedgie bullishness over the quarter.

CITADEL INVESTMENT GROUP

The front-runner position was quite disputed: Anadarko Petroleum Corporation (NYSE:APC) lost its place to a larger competitor: Schlumberger Limited. (NYSE:SLB). By the end of the quarter, 75 major funds held long positions in Schlumberger. Among them, we would like to highlight Ken Fisher‘s Fisher Asset Management: the largest bull, with a stake worth more than $350 million. Trailing Fisher, also worth mentioning is Ken Griffin‘s Citadel Investment Group, which holds more than $230 million in stock, and just recently increased its position considerably, to about 2.67 million shares.

The second place in our list was even more contested than the first one. In fact, three companies are tied here, with 74 funds betting on each one: Anadarko Petroleum Corporation (NYSE:APC), Occidental Petroleum Corporation (NYSE:OXY), and Hess Corp. (NYSE:HES).

In order to still provide some kind of ranking, we decided that we would break the deadlock by assigning the second spot to the company that experienced the largest increase in hedge fund bullishness over the quarter: Hess Corp. (NYSE:HES). This exploration, production, marketing and refining company saw its bull count increase by 14 funds over Q3. This was the case for Paul Singer‘s Elliott Management, the most prominent institutional investor, which upped its bet to more than $1.3 billion, or 17 million shares.

In the third place, with 74 funds backing it up, compared to 63 by the end of Q2, is Occidental Petroleum Corporation (NYSE:OXY). This $75 billion independent E&P company can count  Robert Rodriguez and Steven Romick‘s First Pacific Advisors Llc and Jean-Marie Eveillard‘s First Eagle Investment Management among its bulls, holding roughly 4 million and 2.24 million shares, respectively.

Anadarko Petroleum Corporation (NYSE:APC) plummeted in our list, from the first to the fourth position. Nonetheless, it saw 9 new hedge funds starting positions during the third quarter. Institutional backers now add up to 74, and include Jonathon Jacobson’s Highfields Capital Management (3.9 million shares) and Citadel Investment Group (2.5 million), among several other prominent funds.

Last in our list is Halliburton Company (NYSE:HAL), an oilfield services provider with a market cap of more than $46 billion. Over the past quarter, it witnessed the arrival of 6 new hedge funds; bulls now amount to 68. Glenn Greenberg‘s Brave Warrior Capital, Leon Cooperman‘s Omega Advisors, and Citadel Investment Group are the top 3 of them, holding 4.7 million, 3.6 million, and 3 million shares each, respectively.

Exxon Mobil Corporation (NYSE:XOM), the largest energy company in the world, came in only sixth, with 65 funds betting on its growth – 5 more than on Q2. Although we could not omit mentioning that Warren Buffett is Exxon’s largest investor -he owns more than 40 million shares, it seems like there is more growth contained in some smaller companies in the energy segment –or, at least, this is what “hedgies” believe.

Disclosure: Javier Hasse holds no position in any stocks mentioned.

Recommended Reading:

5 Warren Buffett Stocks Dumb Money Should Avoid

Eurekahedge’s Regional and Strategy Hedge Fund Indices End Mostly in Green in November

Activist Carl Icahn Gets Two Representatives on Hologic, Inc. (HOLX)’s Board

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!