5 War Stocks to Buy Now According to Hedge Funds

2. Devon Energy Corporation (NYSE:DVN)

Number of Hedge Fund Holders: 51     

Devon Energy Corporation (NYSE:DVN) is an independent energy company. At the end of the fourth quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in Devon Energy Corporation (NYSE:DVN), compared to 48 in the previous quarter worth $1.4 billion.

Energy prices have soared since the Russian invasion of Ukraine since Russia is one of the top energy exporters to Europe. Companies like Devon Energy Corporation (NYSE:DVN), already on a high amid rising inflation, are likely to ride this boom as alternative energy supplies are sought by Europe after sanctions on Russian exports. 

In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Devon Energy Corporation (NYSE:DVN) was one of them. Here is what the fund said:

“After a rough start to the year our two biggest energy holdings – WPX Energy rebounded materially in the last six months though energy was still our biggest detractor for the year. I’ve previously written about deciding earlier this year to direct new capital towards better businesses versus adding more to the energy sector, but given the material optionality at WPX, we opted to maintain a material exposure. Recently WPX announced an all stock merger with a larger competitor – Devon Energy Corporation (NYSE:DVN) – which will leave the new company with plenty of cash flow at lower oil prices, less leverage, and material upside to higher commodity prices.”