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 Ken Griffin’s Largest Energy Plays Include Exxon Mobil Corporation, Devon Energy Corp, and Anadarko

Page 1 of 2

Ken Griffin of Citadel Investment Group holds one of the most diverified equity portfolios among billionaire investors that we track. Citadel’s most recent 13F, disclosed an equity portfolio valued at $82.66 billion, where the largest long position amasses only 0.70% of the value, while all top 10 picks represent less than 8% of the total portfolio. The portfolio is also diversified across sectors and comprises companies from Technology, Consumer Discretionary, Finance, Energy, Healthcare, Industrials, and others. Such a diversification lies within Mr. Griffin’s strategy, which involves complex financial algorithms and a lot of computer codes. This innovative technical approach worked out well for Mr. Griffin, with Citadel reporting solid performance in most years since its inception and despite a significant slump during the financial crisis, the investor managed to recover from the losses.

Ken Griffin

A large diversification allows Mr. Griffin to invest in a vast range of companies from small to large in terms of market capitalization. This strategy can be very effective, especially if we take into account the returns of Citadel’s two funds, Kensington and Wellington, which gained 25% and 19.4% in 2012 and 2013 respectively. Moreover, such a strategy is also supported by our research of most popular stock picks among investors. The majority of companies in which big money managers prefer to invest their money are represented by large-cap stocks, however, 50 most popular stocks underperformed the market by 7 basis points per month between 1999 and 2012. Therefore, equity hedge funds had small returns of 4.8%, 11.1% and 1.4% between 2012 and 2014, which are very insignificant relative to the S&P 500 ETF’s gains of 16%, 32.3% and 13.5% during the same years. On the other hand, small cap picks performed much better and our strategy that identifies the best small-cap picks advanced by 33.3% in 2012, 53.2% in 2013 and 28.2% in 2014.

However, let’s get back to Citadel Investment Group. One of the sectors in which Mr. Griffin slightly upped his exposure during the fourth quarter is energy. It’s easy to understand why. Amid low oil prices and issues with supply and demand, the stocks of oil companies took a hit in the second half of 2014. However, oil is a cyclical commodity, which means that the prices are most likely to rebound. Moreover, most large oil companies implemented strategies to hedge from the decline of oil prices and have been able to generate profit growth amid falling revenues. Three oil companies that represented Mr. Griffin’s largest equity plays at the end of 2014 are Devon Energy Corp (NYSE:DVN)Anadarko Petroleum Corporation (NYSE:APC), and Exxon Mobil Corporation (NYSE:XOM) and the investor upped his positions in all three stocks during the last three months of 2014.

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!