The Most Popular Penny Stocks in the Energy Sector Among Elite Hedge Funds

VAALCO Energy, Inc. (NYSE:EGY) is also a micro-cap stock engaged in the exploration of oil and gas in different countries such as Gabon, Angola, Equatorial Guinea and the United States. Atlanta Capital Group and Citadel Advisors added this stock to their portfolio during the quarter, while Cliff Asness’s AQR Capital Management reduced its position in the stock slightly retaining 75,683 shares of this stock. The stock has declined by more than 60% over the last one year and currently trades near its 52 week low price of 75 cents per share. The company reported profits of just $0.2 million in the third quarter and announced that it would close its operations in Angola. It also signed a letter of intent to sell its interests in two wells in the Hefley field in North Texas for $850,000. As per our records, 9 funds held shares worth $4.988 million in this stock at the end of the third quarter.

Ocean Rig UDW Inc. (NASDAQ:ORIG) is an offshore oil and gas drilling contractor that specializes in ultra-deep water drilling operations. This penny stock is currently trading at $1.48 with a market value of just $127 million. The company should receive a boost as the new Trump administration should favor offshore drilling operations for oil and gas companies. This has made the stock gain 28% over the last one month, as investors have become more optimistic about the company’s prospects going forward. Adage Capital Advisors and Arrowstreet Capital are two large Boston based hedge funds which have a large position in the stock. Citadel Advisors also has a holding in this penny stock. The number of funds from our database, having Ocean Rig UDW Inc. (NASDAQ:ORIG) In their portfolio declined to 8 from 11 during the June-September period. The value of their holdings also came down to $10.4 million in the third quarter from $45.9 million in the quarter earlier.

Bellatrix Exploration Ltd. (NYSE:BXE) is a small oil and gas exploration which explores fields mainly in Canada. Dallas based Anson Funds Management bought an extremely large position in this stock and held more than $27 million of the company’s shares at the end of the third quarter. Billionaire Howard Marks also initiated a $9 million position in the stock. Orange Capital, Proxima Capital and AQR Capital Management also held positions in this penny stock. The stock performance has been quite disastrous, with the stock price halving over the last one year. Analysts have an average rating of hold for this stock and expect it to report a full year loss of 31 cents per share in 2016. The company recently announced the appointment of Brent Eshleman as the new CEO. According to funds that we tarck at Insider Monkey, 5 hedge funds held stock worth $19.9 million by September end.

Triangle Petroleum Corporation (NYSEMKT:TPLM) is also in the business of oil and gas exploration like most of the companies mentioned above. It also operates in the oilfield services segment and has a miniscule market value of $20.7 million. The stock has declined by more than 65% year to trade, and trades at just 25 cents a share. Though most funds dumped this stock in the third quarter, Citadel Advisors bought 128,033 shares and $35,000 worth of this company’s stock. D.E. Shaw was another major hedge fund that bought more than 87,000 shares of this stock during the last quarter. Bridgeway Capital Management maintained its $75,000 holding in this company. The company’s financial results have been fluctuating wildly in the last few quarters. It reported revenues of $49 million in the third quarter which was up 10% from the earlier quarter. The company reported net income of $217 million after reporting huge losses in the previous 4 quarters. The number of funds from our system, having Triangle Petroleum Corporation (NYSEMKT:TPLM) in their portfolio remained constant at 5 quarter over quarter

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