BP Capital is a Dallas-based investment firm run by T Boone Pickens. As of the end of the third quarter, BP Capital’s equity portfolio has a value of over $279.37 million, up from $252.41 million a quarter earlier. The fund returned 10.65% from 47 of its long positions in companies worth over $1.0 billion in the third quarter. In this article, we’ll take a closer look at four of BP Capital’s top picks, WPX Energy Inc (NYSE:WPX), Superior Energy Services, Inc. (NYSE:SPN), Kinder Morgan Inc (NYSE: KMI) and Sunoco LP (NYSE:SUN).
Our data culled from the 659 funds in our database which filed 13Fs for the June quarter, and whose portfolios contained at least 5 long positions in companies valued at $1 billion, revealed some startling statistics. Foremost was the fact that an impressive 95% of them delivered positive stock returns with those long positions during the third quarter based on our methodology. In comparison, S&P 500 ETFs returned just 3.3% during the quarter, so that high a percentage of funds posting gains is a noteworthy feat. However, what we don’t see in 13F filings are hedge funds’ holdings that don’t necessarily do as well: the short-side of their portfolios, as well as their low-yield debt positions. Couple that with demanding fees, and you can see why hedge funds consistently underperform the market net of fees, despite being quality stock pickers. That’s why at Insider Monkey, we analyze only the top stock picks of the top hedge funds, to cut through the fees and underperformance.
BP Capital decreased its position in WPX Energy Inc (NYSE:WPX) by 13% in the third quarter, concluding the period with a total of 1.31 million shares of the company valued at $14.92 million. The stock returned 41.7% during the third quarter. At the end of the second quarter, a total of 40 of the hedge funds tracked by Insider Monkey were long this stock, a change of 33% from one quarter earlier. Millennium Management held the most valuable stake in WPX Energy Inc (NYSE:WPX), which was worth $125.8 million at the end of the second quarter. On the second spot was Discovery Capital Management which amassed $81.3 million worth of shares. Moreover, Carlson Capital, D E Shaw, and Clough Capital Partners were also bullish on WPX Energy Inc (NYSE:WPX).