Pioneer Natural Resources (PXD), Apache Corporation (APA) & Billionaire T. Boone Pickens’s Top Q1 Stock Picks

Page 1 of 2

BP CAPITALAfter becoming a billionaire through his success in the oilfields, T. Boone Pickens has moved into finance with his own hedge fund BP Capital (which manages a sizable portion of his own wealth). The fund, which concentrates on energy related investments, recently filed its 13F with the SEC, disclosing many of its long equity positions as of the end of March; see the full filing on the SEC’s website.

We track BP Capital’s filings in our database alongside those of hundreds of other funds as part of our work researching investment strategies (we have found, for example, that the most popular small cap stocks among hedge funds outperform the S&P 500 by an average of 18 percentage points per year) and so we can also check to see what Pickens and his team have been doing over time. Read on for our thoughts on their five largest holdings as of the end of March or compare these picks to previous filings.

Pioneer

BP Capital reported owning a little over 100,000 shares of Pioneer Natural Resources (NYSE:PXD), an oil and gas exploration and production company. A minority of Pioneer Natural Resources (NYSE:PXD)’s production by energy equivalent is oil, with the rest being natural gas and natural gas liquids (where market conditions have not been as good recently). As a result, earnings fell over 50% last quarter compared to the first quarter of 2012. This does give Pioneer Natural Resources (NYSE:PXD) some potential upside if natural gas prices recover, and it’s certainly possible that demand will rise, but analysts don’t seem optimistic on the company with the forward P/E being over 20.

Apache

Pickens initiated a position of about 120,000 shares in Apache Corporation (NYSE:APA), a global E&P company. The production mix here is also a little less than 50% oil in terms of energy equivalent, though oil does account for nearly 80% of production revenue due to the more favorable market conditions we’ve mentioned earlier. Both revenue and net income fell 10% in Apache’s most recent quarter compared to the same period in the previous year, though here the sell-side is forecasting a strong recovery: the stock trades at 9 times forward earnings estimates, in line with the valuation of many oil majors.

Best of the rest

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!