5 Oil and Gas Stocks to Buy According to Ray Dalio

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In this article, we discuss the 5 oil and gas stocks to buy according to Ray Dalio. If you want to read the detailed analysis of Ray Dalio’s investment portfolio and investment philosophy, go directly to 10 Oil and Gas Stocks to Buy According to Ray Dalio.

5. Cenovus Energy Inc. (NYSE:CVE)

Number of Hedge Fund Holders: 42

Cenovus Energy Inc. (NYSE:CVE) is a Canadian integrated oil and gas company, focusing primarily on oil sands assets. As of August 18, the company stock has climbed 47.74% on a year-to-date basis.

Cenovus Energy Inc. (NYSE:CVE) reached an agreement to buy BP p.l.c. (NYSE:BP)’s 50% interest in BP-Husky Toledo Refinery in early August. The company has already owned 50% of the refinery since 2021. Cenovus Energy Inc. (NYSE:CVE) is expected to assume the operations of the refinery by the end of 2022 after the closing of the transaction, which is considered to be $300 million in cash subject to customary closing adjustments and the value of inventory at that time. Upon the closing of the transaction, the company’s total refining capacity will increase to 740,000 bbls/d.

According to the Insider Monkey database, 42 hedge funds had long positions in Cenovus Energy Inc. (NYSE:CVE), with a combined stake value of $2.9 billion at the end of the second quarter of 2022. In the previous quarter, 44 hedge funds held bullish positions in the company, collectively valued at $2.39 billion. In Q2, Bridgewater Associates increased its hold on the company by 254% to $37.38 million, representing 0.15% of the fund’s portfolio.

Here is what L1 Capital said about Cenovus Energy Inc. (NYSE:CVE) in its fourth-quarter 2021 investor letter:

“Detailed, bottom-up stock research remains the investment team’s primary focus and the core driver of portfolio performance. 2021 once again demonstrated the team’s ability to identify ‘winners’ through extensive company and industry research across a diverse range of sectors. Key contributors included Cenovus Energy, (due to) recovering oil price leading to improved investor sentiment, consensus earnings upgrades and strong free cash flow generation.”

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