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

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

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!