Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Billionaire Carl Icahn’s Favorite Energy Stocks

Page 1 of 2

Given his many decades of experience and tens of billions in net worth, Carl Icahn of Icahn Capital certainly knows how to invest. Over his storied career, Icahn has struck fear in both intransigent corporate management and competing corporate activists. In the process, Icahn has also won the hearts of many investors by unlocking value in many companies both in the short- and long-term.

In this article, we’ll put the microscope on some of Icahn’s favorite energy stocks, which include Cheniere Energy, Inc. (NYSEMKT:LNG), Freeport-McMoRan Inc (NYSE:FCX), CVR Energy, Inc. (NYSE:CVI), Chesapeake Energy Corporation (NYSE:CHK), and Transocean LTD (NYSE:RIG) and see how other hedge funds were positioned in them at the end of the second quarter.

While there are many metrics that investors can assess in the investment process, the hedge fund sentiment is something that is often overlooked. However, hedge funds and other institutional investors allocate significant resources while making their bets and their long-term focus makes them the perfect investors to emulate. This is supported by our research, which determined that following the small-cap stocks that hedge funds are collectively bullish on can help a smaller investor to beat the S&P 500 by around 95 basis points per month (see the details here).

Cheniere LNG Tanker Shipping Ship Liquid Natural Gas Vessel Fuel Carrier

Oleksandr Kalinichenko /

#5 Transocean LTD (NYSE:RIG)

– Shares Held (as of June 30): 21.48 million
– Total Value (as of June 30): $255.37 million

Despite the fact that many in the industry expect utilization rates to bottom out by the middle of next year, Transocean LTD (NYSE:RIG) has retraced from its highs in early March. From March 31 through June 30, Icahn’s holding in the offshore driller remained unchanged at 21.48 million shares. Although there seems to be sharp resistance at $50 per barrel for WTI, Icahn seems confident in the value/optionality that Transocean offers. As Transocean has one of the stronger balance sheets in the sector, many traders think the company can survive until a time when crude prices go higher than $50 and offshore activity increases again.

Follow Transocean Ltd. (NYSE:RIG)
Trade (NYSE:RIG) Now!

#4 Chesapeake Energy Corporation (NYSE:CHK)

– Shares Held (as of June 30): 73.05 million
– Total Value (as of June 30): $312.65 million

Like Transocean, Carl Icahn kept his stake in Chesapeake Energy Corporation (NYSE:CHK) unchanged during the second quarter at 73.05 million shares. Since WTI bottomed out in February, Chesapeake has been one of the hottest stocks on the market, rallying from under $2 per share to around $7.35 per share (shares of the company are up by over 63% year-to-date due to the surge). Driving the bullishness is the belief that Chesapeake’s liquidity troubles are more and more in the rear-view mirror and that natural gas/WTI fundamentals are slowly but surely improving. Also lending a helping hand have been better-than-expected asset sales and falling well costs.

Follow Chesapeake Energy Corp (NYSE:CHK)
Trade (NYSE:CHK) Now!

We’ll power through Icahn’s three favorite energy stocks on the next page.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!