Why Facebook, Citigroup, Continental Resources, and 2 Other Stocks Are Making Noise Today

Energy Winners May Have More Room to Run

Oil E&Ps SM Energy Co (NYSE:SM), Continental Resources, Inc. (NYSE:CLR), and Anadarko Petroleum Corporation (NYSE:APC) are in the spotlight today after Barron’s columnist Ben Levisohn wrote that oil stocks could continue to rally. With WTI prices close to $50 per barrel, many investors have been snapping up the high-quality names in the sector. One of the best performers this year has been SM Energy Co (NYSE:SM), which has rallied by over 80% year-to-date. Investors like the stock due to the combination of higher crude prices and due to SM’s purchase of acreage in the Permian Basin this month.

Mr. Levisohn thinks Continental Resources, Inc. (NYSE:CLR), which is close to a 52-week high, and Anadarko Petroleum Corporation (NYSE:APC) are also candidates to rally given their deleveraging efforts.

Given that all three companies have relatively competitive production costs, it’s not surprising that many hedge funds in our system are long each stock. As of June 30, Clint Carlson’s Carlson Capital was long 1.7 million shares of Continental Resources, while Jim Simons’ Renaissance Technologies owned more than 227,000 shares of SM Energy. Anadarko witnessed a declination in hedge fund interest during the second quarter however, being held in the portfolios of 48 hedge funds on June 30, down from 59 a quarter earlier.

Disclosure: None