Insider Monkey follows hedge fund managers because they’re the smartest investors around. They leave less to chance than most investors. They go great lengths to get an “edge” over ordinary investors. Hedge fund managers also have the resources to do extensive research on public companies and they have access to experts who can guide them. We believe we are more likely to beat the market by imitating insiders and hedge funds than trading against them. Based on the transactions of nearly 700 hedge funds compiled by Goldman Sachs, we present the list of top 11 energy stocks that hedge funds are buying like crazy:
1. Williams Co (WMB): Twenty hedge funds had WMB among their top 10 holdings. Hedge funds collectively own 15% of the outstanding shares. The stock returned 25.9% so far this year. Michael Lowenstein’s Kensico, Jeffrey Tannenbaum’s Fir Tree, and Michael Karsch’s Karsch Capital are among the hedge funds with huge WMB positions.
2. BP Plc (BP): Sixteen hedge funds had BP among their top 10 holdings. Hedge funds collectively own 1% of the outstanding shares. The stock gained 5% so far this year. Kenneth Mario Garschina’s Mason Capital, David Einhorn’s Greenlight, and Christian Leone’s Luxor Capital had the largest holdings in BP at the end of March.
3. Marathon Oil (MRO): Sixteen hedge funds had MRO among their top 10 holdings. Hedge funds collectively own 5% of MRO’s outstanding shares. The stock gained 45.6% so far this year. Jeffrey Altman’s Owl Creek, Eric Mindich’s Eton Park and Reid Walker’s WS Capital had large positions in MRO at the end of March.
4. Exxon Mobil (XOM): Sixteen hedge funds had XOM among their top 10 holdings. Hedge funds collectively own 1% of XOM’s outstanding shares. The stock gained 14.2% so far this year. Phill Gross’ Adage and Ken Fisher were among the fund managers who are bullish about XOM.
5. Anadarko Petroleum (APC): Fifteen hedge funds had APC among their top 10 holdings. Hedge funds collectively own 9% of APC’s outstanding shares. The stock returned 3.4% so far this year. John Paulson’s Paulson & Co and Steve Heinz’s Lansdowne Partners had large positions in APC at the end of March.
6. ConocoPhillips (COP): Fourteen hedge funds had COP among their top 10 holdings. Hedge funds collectively own 1% of COP’s outstanding shares. The stock gained 8.6% so far this year. Warren Buffett’s Berkshire, First Eagle and D.E. Shaw had large holdings in COP at the end of March.
7. Chevron (CVX): Fourteen hedge funds had CVX among their top 10 holdings. Hedge funds collectively own 1% of CVX’s outstanding shares. The stock gained 14.8% so far this year. Phill Gross and Cliff Asness had large holdings in CVX at the end of March.
8. Halliburton (HAL): Fourteen hedge funds had HAL among their top 10 holdings. Hedge funds collectively own 4% of HAL’s outstanding shares. The stock gained 23.3% so far this year. Richard Schimel’s Diamondback and Ken Griffin’s Citadel had large holdings in HAL at the end of March.
9. Schlumberger (SLB): Thirteen hedge funds had SLB among their top 10 holdings. Hedge funds collectively own 1% of HAL’s outstanding shares. The stock gained 20.4% so far this year. Jason Capello’s Merchants’ Gate Capital and David Stemerman’s Conatus are among the hedge funds with large SLB positions.
10. Chesapeake (CHK): Twelve hedge funds had CHK among their top 10 holdings. Hedge funds collectively own 5% of CHK’s outstanding shares. The stock gained 20.3% so far this year. Mason Hawkins’ Southeastern Asset Management and Robert Pohly’s Samlyn Capital had large CHK holdings at the end of March.
11. Ensco Plc (ESV): Twelve hedge funds had ESV among their top 10 holdings. Hedge funds collectively own 19% of ESV’s outstanding shares. The stock gained 1.8% so far this year. Robert Rodriguez’s First Pacific Advisors had the largest position in ESV among the 300+ funds we track.
These 11 stocks had an average return of 15% so far in 2011. Investors who want to hedge their risks against rising energy prices should consider investing in these 11 hedge fund favorites.
