5 Energy Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates

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In this article, we discuss 5 energy stocks to buy according to billionaire Bruce Kovner’s Caxton Associates. If you want our detailed analysis of these stocks, go directly to 10 Energy Stocks to Buy According to Billionaire Bruce Kovner’s Caxton Associates

5. Ovintiv Inc. (NYSE:OVV)

Caxton Associates’ Stake Value: $1,941,000

Percentage of Caxton Associates’ 13F Portfolio: 0.21%

Number of Hedge Fund Holders: 44

Ovintiv Inc. (NYSE:OVV) is one of the top energy stock picks of Bruce Kovner’s Caxton Associates, with the hedge fund recently acquiring the stock during Q3 2021. Caxton Associates purchased 59,031 shares of Ovintiv Inc. (NYSE:OVV), worth $1.94 million, accounting for 0.21% of the firm’s total Q3 investments. Ovintiv Inc. (NYSE:OVV) is a hydrocarbon exploration company, which is one of the largest natural gas producers from Canada. 

On November 2, Ovintiv Inc. (NYSE:OVV) announced its Q3 results, posting earnings per share of $1.50, missing estimates by $0.01. Revenue over the period jumped 50.34% year-over-year to $1.79 billion, but missed estimates by $134.55 million. 

Mizuho analyst Silvio Micheloto raised the price target on Ovintiv Inc. (NYSE:OVV) to $56 from $54 and kept a Buy rating on the shares on November 30, as part of a broader research note on the US energy sector. 

A total of 44 hedge funds were bullish on Ovintiv Inc. (NYSE:OVV) in Q3 2021, with stakes equaling roughly $684 million. One of the leading Ovintiv Inc. (NYSE:OVV) stakeholders is Maple Rock Capital, with 2.6 million shares, worth $88.5 million. 

Here is what Davis International Fund has to say about Ovintiv Inc. (NYSE:OVV) in their Q4 2020 investor letter:

“Energy holdings in Ovintiv also experienced detracted performance, as oil demand collapsed due to the pandemic. With approximately 70% of oil demand used for transportation, the decline in miles driven (i.e., U.S. miles driven are down 11% in 2020) and the far bigger 60–70% decline in global air passenger traffic led to a dramatic drop in oil prices.

It is our expectation that oil demand will remain weak for the foreseeable future, as flying and driving slowly recover, and that over the long term, electric vehicles and renewable energy will also decrease demand for fossil fuels. As a result, we sold out of our energy positions in 2020. We redeployed the assets in other sectors such as financial services that also saw falling stock prices, but where we had stronger conviction that the long-term health of their business was strong.”

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