Hedge Funds Aren’t Crazy About Occidental Petroleum Corporation (OXY) Anymore

Page 2 of 2

Seeing as Occidental Petroleum Corporation (NYSE:OXY) has witnessed bearish sentiment from the aggregate hedge fund industry, we can see that there lies a certain “tier” of fund managers that decided to sell off their entire stakes heading into Q4. Interestingly, Daniel S. Och’s OZ Management dropped the biggest position of the 700 funds tracked by Insider Monkey, totaling an estimated $198 million in call options, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund dumped about $69.4 million worth of call options. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 2 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Occidental Petroleum Corporation (NYSE:OXY) but similarly valued. These stocks are Enterprise Products Partners L.P. (NYSE:EPD), Duke Energy Corp (NYSE:DUK), Target Corporation (NYSE:TGT), and BlackRock, Inc. (NYSE:BLK). This group of stocks’ market valuations are closest to OXY’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EPD 21 210066 1
DUK 22 646270 1
TGT 44 1454433 0
BLK 33 507373 -2

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $705 million. That figure was $1.37 billion in OXY’s case. Target Corporation (NYSE:TGT) is the most popular stock in this table, while Enterprise Products Partners L.P. (NYSE:EPD) is the least popular one with only 21 bullish hedge fund positions. Occidental Petroleum Corporation (NYSE:OXY) on par with Target Corporation (NYSE:TGT), but has attracted a smaller share of the hedgies’ money. We are not going to hold that against them and recommend both OXY and TGT as potential candidates for a long position. Further research is necessary to find out which stock has a larger upside potential.

Page 2 of 2