Activist Billionaire Paul Singer 2023 Portfolio: Top 5 Stock Picks

2. Marathon Petroleum Corporation (NYSE:MPC)

Elliott Management’s Stake Value: $1,491,893,950

Number of Hedge Fund Holders: 58

Marathon Petroleum Corporation (NYSE:MPC) is an integrated downstream energy company that operates in the United States. The company functions in two main segments, Refining & Marketing and Midstream. In Q1 2023, Paul Singer’s Elliott Management owned 11 million shares of Marathon Petroleum Corporation (NYSE:MPC), worth about $1.5 billion and representing 11.04% of the total 13F securities. 

On May 19, Nitin Kumar, an analyst at Mizuho, maintained a Buy rating on Marathon Petroleum Corporation (NYSE:MPC) but adjusted the firm’s target price to $148 from $160. In a research note to investors, the analyst explained that the recent decline in the U.S. oil and gas sector’s stock prices contradicts the messaging conveyed by individual companies. According to Kumar, oil and gas producers emphasized their focus on capital discipline, cash returns, and improving service costs during the first quarter. On the other hand, refiners highlighted improved physical market conditions. Mizuho stated that the sector’s valuations are currently disconnected from both historical levels and other market sectors. Mizuho expressed a more positive outlook for gas-focused exploration and production companies, anticipating a potential turnaround in U.S. gas prices in the second half of 2023. However, it adopts a more cautious stance towards U.S. refiners.

According to Insider Monkey’s first quarter database, 58 hedge funds were long Marathon Petroleum Corporation (NYSE:MPC), compared to 52 funds in the prior quarter. Cliff Asness’ AQR Capital Management is a prominent stakeholder of the company. 

Here is what Clark Street Value has to say about Marathon Petroleum Corporation (NYSE:MPC) in its Q4 2021 investor letter:

“During the worst of covid, I bought some LEAPs on Marathon Petroleum (MPC) as a proxy for Par Pacific (PARR) since long dated options weren’t available on the later.  Those MPC calls expire next month and I’ll take profits, with PARR I’ve reduced my position throughout the year and might sell the rest early next year, I’ve owned it for 6-7 years and it has gone nowhere, they haven’t touched the NOLs, just a difficult business that I probably don’t understand as well as I should.”