This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Energy Stock Favorites of Hedge Fund Managers (Update 1)

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player
  • Oil service was the energy sector in the doghouse among hedge funds
  • In a trading pattern that was seen across most of the major hedge fund managers, the large-cap oil service stocks were dumped in the fourth quarter, while managers continued to bulk up on their favorite independent exploration and production companies.

    Occidental Petroelum (OXY) was among the top 10 increased positions for Steven Cohen's SAC Capital, while large-cap oil service company Baker Hughes (BHI) was its biggest sale.

    Halliburton (HAL - Get Report) and Schlumberger (SLB) were among the top 10 sales of quant driven hedge fund Renaissance Technologies in the fourth quarter.

    The selling in oil service stocks is not surprising as the sector has been battered by the shift in the North American market away from the natural gas basins and to the liquids shale plays. While the shale business is booming, the North American market pricing power that had been held by many oil service companies has begun eroding. Halliburton said in its recent earnings that margins will fall, but won't collapse as some investors seem to be predicting.

    The hedge funds sold at the right time, as stocks like Halliburton remain in the doghouse this year -- even as many independent E&Ps tilted to shale oil exploration have rallied, resurgence from fourth-quarter lows in oil service stocks has been modest. The lack of support for oil service shares continues to suggest there is longer-term value to be exploited for the patient investor.
    4 of 5

    Check Out Our Best Services for Investors

    Action Alerts PLUS

    Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    Quant Ratings

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    Stocks Under $10

    David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    14-Days Free
    Only $9.95
    14-Days Free
    Dividend Stock Advisor

    David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Updates with exact steps to take - BUY, HOLD, SELL
    Trifecta Stocks

    Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

    Product Features:
    • Model Portfolio
    • Intra Day Trade alerts
    • Access to Quant Ratings
    Options Profits

    Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • Actionable options commentary and news
    • Real-time trading community
    SYM TRADE IT LAST %CHG
    WFT $9.97 2.30%
    HAL $37.71 -1.20%
    LNG $57.99 -3.30%
    RRMS $30.06 0.70%
    XCO $0.96 -3.40%

    Markets

    Chart of I:DJI
    DOW 16,373.39 +22.01 0.13%
    S&P 500 1,955.14 +6.28 0.32%
    NASDAQ 4,748.4230 -1.5560 -0.03%

    Free Reports

    Top Rated Stocks Top Rated Funds Top Rated ETFs