Hedge Funds Are Betting Big On These 5 Energy Stocks

#3 Devon Energy Corp (NYSE:DVN)

– Number of Hedge Fund Shareholders (as of June 30): 61
– Total Value of Hedge Funds’ Holdings (as of June 30): $1.48 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 7.80%

Although Devon Energy Corp (NYSE:DVN) might have made a mistake in terms of selling 28,000 acres of its Permian holdings to Pioneer Natural Resources in mid-June, the company did receive $435 million for the deal. The sale deleverages Devon and makes the stock a safer play in the long-run. Given its considerable attractive shale acreage elsewhere, Devon’s future growth prospects shouldn’t be overly hurt from the sale. The smart money is certainly a fan of Devon Energy. 61 hedge funds in our database had a long position in Devon Energy Corp (NYSE:DVN) at the end of the second quarter, up by three funds quarter-over-quarter.

#2 Halliburton Company (NYSE:HAL)

– Number of Hedge Fund Shareholders (as of June 30): 62
– Total Value of Hedge Funds’ Holdings (as of June 30): $2.27 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 5.80%

Analysts are bullish on Halliburton Company (NYSE:HAL), as 26 have ‘Buy’ equivalent ratings on the oil services company, while eight have ‘Hold’ ratings, and only two have ‘Sell’ ratings. The smart money shares analysts’ sentiment. 62 were long Halliburton Company (NYSE:HAL) at the end of the second quarter, up by eight funds from the end of the first quarter. Like Schlumberger, Halliburton will see more business if WTI and Brent prices rise. Shares of the company are up by 27% year-to-date.

#1 Pioneer Natural Resources (NYSE:PXD)

– Number of Hedge Fund Shareholders (as of June 30): 74
– Total Value of Hedge Funds’ Holdings (as of June 30): $3.56 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 14.40%

With 74 funds in our system holding shares of the company on June 30, up by 13 funds from March 31, Pioneer Natural Resources (NYSE:PXD) easily ranks as the smart money’s top energy pick. Given’s today’s bid-up-anything-related-to-the-Permian craze, Pioneer’s management made a savvy move in mid-June by purchasing 28,000 acres in the Midland Basin from Devon Energy for $435 million. Given today’s Permian valuations, that acreage would likely have cost considerably more. Due to its purchase, Pioneer plans to add 17 new rigs to the area, in a move that will likely increase its EBITDA and production for the full-year. Jim Simons‘ quant fund Renaissance Technologies was one of the new Pioneer shareholders during the second quarter, building a position of 427,393 shares as of June 30.

Disclosure: None