This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Energy Stock Favorites of Hedge Fund Managers (Update 1)

Stocks in this article: VLO XLE HFC KMI LNG EP HAL XCO RRMS GLNG

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

Get Adobe Flash player

  • Multi-quarter buying may be the best indicator of hedge fund managers' favorite energy stocks
  • The oil service stocks were dogs in the fourth quarter and that shouldn't surprise anyone given the bottoming out in the sector and the expectation that things got worse before they got better. In fact, it might be more interesting to see whether the hedge fund managers start adding back to some of their oil service stakes, like they have already done -- and were doing again in the fourth quarter with oil service stock Weatherford International (WFT), which was beaten up long before the rest of the sector due to company-specific missteps.

    SAC Capital, for example, while dumping Baker Hughes was adding to its Weatherford stake in the fourth quarter. Weatherford is now the hedge fund's third-largest holding after adding to its position three quarters in a row.

    Here are some of the other top hedge fund manager multi-quarter buys across the energy sector:

    Activist hedge fund Jana Partners has added to its stake in Anadarko Petroleum (APC) for two consecutive quarters.

    Pickers has lightened his exposure to EOG Resources (EOG) for three quarters, while U.S. independent exploration and production peers of EOG, Devon Energy (DVN), SandRidge Energy (SD) and Chesapeake Energy (CHK) remain among his top 10 holdings in the fourth quarter.

    Ray Dalio's Bridgewater Associates has been adding to its stake in U.S. independent E&P Denbury Resources (DNR) for three quarters.

    Denbury has been a popular way for energy investors to gain exposure to the mid-cap U.S. oil exploration story and the support for crude oil prices, with a unique production technique twist .

    In multi-quarter stock buying action like Denbury or Weatherford, a longer-term bias from the hedge fund managers may be revealed, as these stocks haven't moved up or down in a straight line in the past year.

    -- Written by Eric Rosenbaum from New York.


    >To contact the writer of this article, click here: Eric Rosenbaum.

    >To follow the writer on Twitter, go to Eric Rosenbaum.

    Follow TheStreet on Twitter and become a fan on Facebook.

    5 of 5

    Select the service that is right for you!

    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    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
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

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

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, 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
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

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

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!


    DOW 17,883.30 +78.50 0.44%
    S&P 500 2,072.27 +1.62 0.08%
    NASDAQ 4,774.7930 +9.4130 0.20%

    Brokerage Partners

    Rates from

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs