Is Halliburton Company (HAL) A Good Stock To Buy Now?

Halliburton Company (NYSE:HAL): Are Hedge Funds Right About This Stock?

Of the funds tracked by Insider Monkey, ValueAct Capital, managed by Jeffrey Ubben, holds the most valuable position in Halliburton Company (NYSE:HAL). ValueAct Capital has a $1.48 billion position in the stock of 33.76 million shares in its portfolio, comprising 8.2% of its 13F portfolio. Ubben is a long-term investor with an excellent track record. He probably doesn’t worry too much about HAL’s short-term performance and sees this company as a good long-term bet. He previously invested in the company and cashed out after the company’s shares climbed all the way to $70+. He is getting involved once again as share prices dipped below $40 at the end of last year. The second-most bullish hedge fund manager is value investor Glenn Greenberg of Brave Warrior Capital, with a $244.2 million position including 5.57 million shares; 7.5% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include John Overdeck and David Siegel‘s Two Sigma Advisors, billionaire Lee Ainslie’s Maverick Capital, and billionaire Ken Griffin’s Citadel Investment Group.

Judging by the fact that Halliburton Company (NYSE:HAL) has witnessed a declination in interest from hedge fund managers, logic holds that there was a specific group of hedge funds that elected to cut their full holdings at the end of the first quarter. Interestingly, Christopher C. Grisanti‘s Grisanti Brown & Partners dropped the largest stake of all the hedgies followed by Insider Monkey, totaling an estimated $104.6 million in call options. Alec Litowitz and Ross Laser of Magnetar Capital were right behind this move, as they sold off about a $93.7 million position. These transactions are interesting, as total hedge fund interest dropped by three funds at the end of the first quarter.

What interests us in Halliburton is the increase in net invested amount and first quarter results outmatching most of the other oil industry players. Jeff Ubben is also one of our favorite fund managers to imitate. We believe Halliburton will outperform the market over the next 12-24 months.

Disclosure: None