Oil prices have rallied in recent weeks as OPEC successfully put aside its geopolitical differences and agreed to cut production. On the back of the decision, some bullish analysts think that a revival in the energy sector is due amid the growing demand around the globe. Bears, on the other hand, are not so sure. In this article, we will analyze several energy stocks in which the billionaires of the Wall Street are interested in.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively the most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs.
Anadarko Petroleum Corporation (NYSE:APC)
Of the 64 billionaires we track, 10 were bullish on Anadarko Petroleum Corporation (NYSE:APC) as they amassed $1.73 billion worth of the company’s stock at the end of the third quarter. This shows a growing interest in the company because only 6 billionaires were long Anadarko Petroleum at the end of the second quarter. Several investment firms have upgraded Anadarko recently, including Credit Suisse, Guggenhei and UBS. The company missed consensus estimates for the third quarter as it posted a loss of $0.89 a share on $1.89 billion revenue, compared to the forecasts of $0.54 per share loss and $2.19 billion revenue. Andreas Halvorsen’s Viking Global owns 8.54 million shares of the company, as of the most recent 13F period.
Pioneer Natural Resources (NYSE:PXD)
As of the end of the third quarter, 10 billionaires in our data were long Pioneer Natural Resources (NYSE:PXD). The total value Pioneer Natural’s stock owned by these investors amounted to $1.03 billion. The Texas-based energy company reported third quarter EPS of $0.13, worse than the consensus estimate of $0.16. Despite the third quarter miss, the stock has gained 49% in value since the start of the year. At the end of the third quarter, a total of 72 hedge funds tracked by Insider Monkey were bullish on Pioneer Natural Resources (NYSE:PXD)
On the next page, we will see the rest of the energy stocks that billionaires like.