Here’s Why You Should Be Interested in WPX Energy Inc (WPX), Sunoco LP (SUN) & Two Other Energy Stocks

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).

BP Capital left unchanged its stake in Superior Energy Services, Inc. (NYSE:SPN) during the third quarter at 635,104 shares worth $11.37 million. The stock inched down by 2.8% during the third quarter. During the second quarter, the number of funds from our database long Superior Energy Services increased by one to 27. The largest stake in Superior Energy Services, Inc. (NYSE:SPN) was held by Pzena Investment Management, which reported holding $78.5 million worth of stock as of the end of June. It was followed by Renaissance Technologies with a $42.1 million position. Other investors bullish on the company included AQR Capital Management, Pine River Capital Management, and GLG Partners.

In Kinder Morgan Inc (NYSE:KMI), BP Capital held 587,890 shares at the end of September, unchanged over the quarter. However, amid a 24.3% growth registered by the stock, the value of the position climbed to $13.59 million from $11.01 million during the third quarter. A total of 53 funds tracked by us held long positions in this stock at the end of June, down by 9% over the quarter. Berkshire Hathaway was the largest shareholder of Kinder Morgan Inc (NYSE:KMI), with a stake worth $496.7 million reported as of the end of June. Trailing Berkshire Hathaway was FPR Partners, which amassed a stake valued at $274 million. Zimmer Partners, Renaissance Technologies, and D E Shaw also held valuable positions in the company.

BP Capital ended the third quarter with 408,859 shares of Sunoco LP (NYSE:SUN) shares, which represents a 23% increase over the quarter. The stake was valued at over $11.86 million at the end of September. The stock declined by 0.5% during the third quarter. During the second quarter, the number of funds from our database long Sunoco LP (NYSE:SUN) increased by 9%to 12. More specifically, Magnetar Capital was the largest shareholder of Sunoco LP (NYSE:SUN), with a stake worth $68.2 million reported as of the end of June. Wexford Capital, BeaconLight Capital, and Renaissance Technologies also held valuable positions in the company.

Disclosure: none