Shares of Seadrill Ltd (NYSE:SDRL), Marathon Oil Corporation (NYSE:MRO), Viacom, Inc. (NASDAQ:VIAB), Parnell Pharmaceuticals Holdings Ltd (NASDAQ:PARN), and Intrexon Corp (NYSE:XON) are surging on the last day of the trading week, for various reasons. In this article, we will examine why traders are piling into each stock and also see how the world’s greatest investors are positioned in each company.
Our research 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).
Seadrill and Marathon Oil Rally on Higher Crude Prices
Seadrill Ltd (NYSE:SDRL) and Marathon Oil Corporation (NYSE:MRO) shares have rallied by over 4% and 3%, respectively today on the back of stronger crude prices. In morning trading, Brent prices have rallied by 2.49% to $45.64 per barrel while WTI futures have crossed the $44.00 per barrel mark as traders become more optimistic on the supply and demand outlook for the commodity. Demand for offshore drilling will increase the higher crude prices go (although the sector might need considerably higher prices in order for many firms to be competitive). Existing wells for E&Ps will generate more cash if WTI prices rise too. Of the 786 elite funds that we track, 21 funds owned $57.95 million worth of Seadrill Ltd (NYSE:SDRL)’s shares, which accounted for 3.50% of the float on December 31, down from 23 funds with $108.92 million in holdings respectively on September 30. Cliff Asness’ AQR Capital Management was among 27 top funds that held Marathon Oil Corporation (NYSE:MRO) in their portfolios at the end of 2015.
On the next page, we examine the trading action on Viacom Inc, Parnell Pharmaceuticals, and Intrexon Corp today.