Hedge Funds Love Exxon Mobil, Schlumberger, and More Energy Stocks

We have put together our database of 13F filings from hundreds of hedge funds and other notable investors following the remaining filings being made public earlier this month. This wave of 13Fs disclose long equity positions as of the end of December 2012. Even with the delay, we’ve developed investing strategies based on 13F activity which can be profitable; for example, the most popular small cap stocks among hedge funds tend to produce an excess return of 18 percentage points per year (learn more about our small cap strategy). We also like to look at which stocks hedge funds like in different sectors. Here are the ten most popular energy stocks:

CITADEL INVESTMENT GROUP

The energy stock that the largest number of filers in our database reported owning was Anadarko Petroleum Corporation (NYSE:APC), a $42 billion market cap oil, gas, and natural gas liquids company.  62 hedge funds reported a position in Anadarko. One of these was billionaire Ken Griffin’s Citadel Investment Group, which increased its holdings by 56% between October and December to a total of 3.5 million shares (see Griffin’s stock picks). Anadarko trades at 16 times consensus earnings for next year.

Schlumberger Limited. (NYSE:SLB), an oilfield services company, had 55 hedge funds report a position- about even with the number who did for the third quarter of 2012. Fisher Asset Management, managed by billionaire Ken Fisher, had 7.8 million shares of Schlumberger in its portfolio (find Fisher’s favorite stocks). While Schlumberger’s revenue was up moderately last quarter compared to the same period in 2011, earnings were down.

54 hedge funds and other notable investors owned supermajor Exxon Mobil Corporation (NYSE:XOM), down from 59 at the end of September. Exxon Mobil- which at one point briefly overtook Apple to become the largest publicly traded U.S. company by market cap- is one of the top picks in the Bill and Melinda Gates Foundation Trust’s portfolio. Research more stocks that the foundation’s money is invested in.

Acquisition target Nexen Inc. (NYSE:NXY) was owned by 52 filers in our database, with others which we had previously recorded selling as the gap between the transaction price and the market price narrowed during the quarter as the proposed deal overcame Canadian regulatory hurdles. Learn more about merger arbitrage strategies.

We tracked 50 hedge funds who owned shares of Schlumberger’s smaller peer, Halliburton Company (NYSE:HAL); Halliburton had actually been slightly more popular in our analysis for the third quarter, but was sold more frequently over the next three months. Billionaire Leon Cooperman’s Omega Advisors closed 2012 with 3.8 million shares in its portfolio (check out more stocks Cooperman liked).

See five more energy stocks that were popular among hedge funds:

Occidental Petroleum Corporation (NYSE:OXY) was another popular energy stock among hedge funds, with a small number of sales bringing it to 49 filers. One fund which was adding shares was Renaissance Technologies, founded by billionaire Jim Simons; Renaissance nearly doubled its stake to a total of 2.1 million shares (find more stocks Renaissance was buying).

47 hedge funds and other notable investors owned Valero Energy Corporation (NYSE:VLO), the same number that did at the beginning of October. AQR Capital Management was buying the stock in Q4 2012 and reported owning 1.1 million shares in the 13f filing; AQR is managed by Cliff Asness (check out Asness’s stock picks).

Our database showed that National-Oilwell Varco, Inc. (NYSE:NOV), an equipment and services company which includes drilling rigs among its offerings, was owned by 43 filers that we track. One of these was Berkshire Hathaway; Warren Buffet’s holding company reported a position of 5.3 million shares (research Buffett’s favorite stocks).

50 hedge funds had owned shares of BP plc (NYSE:BP) at the end of the third quarter, but that figure had fallen to 42 by the beginning of 2013. Seth Klarman’s Baupost Group sold a small number of shares ; BP was still that hedge fund’s top stock pick (see more of Klarman’s largest holdings).

Joining BP at the bottom of the top ten list, with 42 13F filers in our database reporting a position, was fellow supermajor Chevron Corporation (NYSE:CVX). D.E. Shaw- named after its founder, billionaire David Shaw- was one fund with a large position in Chevron.

Disclosure: I own no shares of any stocks mentioned in this article.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

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!