A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Phillips 66 (NYSE:PSX).
Is Phillips 66 (NYSE:PSX) undervalued? Money managers are getting more optimistic. The number of long hedge fund positions went up by 3 recently. PSX was in 29 hedge funds’ portfolios at the end of September. There were 26 hedge funds in our database with PSX holdings at the end of the previous quarter. At the end of this article we will also compare PSX to other stocks including Target Corporation (NYSE:TGT), BCE Inc. (USA) (NYSE:BCE), and Infosys Ltd ADR (NYSE:INFY) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
How are hedge funds trading Phillips 66 (NYSE:PSX)?
Heading into the fourth quarter of 2016, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a rise of 12% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Warren Buffett’s Berkshire Hathaway has the number one position in Phillips 66 (NYSE:PSX), worth close to $6.5 billion, comprising 5% of its total 13F portfolio. The second most bullish fund manager is East Side Capital (RR Partners), led by Steven Richman, holding a $188 million position; 9.1% of its 13F portfolio is allocated to the stock. Remaining members of the smart money that hold long positions contain D. E. Shaw’s D E Shaw, Cliff Asness’ AQR Capital Management and David Cohen and Harold Levy’s Iridian Asset Management.