If there is one sector more boring that telecom, it's utilities. Though many are big dividend payers, there's little excitement in owning an electricity company. Making matters worse, the utility sector saw earnings dip 0.4% in the fourth quarter, according to FactSet Research. Looking ahead, utilities are the only sector expected to see earnings shrink in 2012, with analysts' estimates calling for a 3.2% slide.
Despite those negatives, utility stocks have been the best performers this year on the S&P 500, climbing 14.8% in 2011. Boring and unsexy is much more palatable if it means getting a big return. However, that success hasn't carried over into 2012, with the utilities sector down 4.2% through Feb. 15.
David Shaw's hedge fund was one buyer of utilities during the quarter. DE Shaw upped its stake in companies like Northeast Utilities (NU), Constellation Energy (CEG), FirstEnergy (FE) and CenterPoint Energy (CNP), among several others. Leon Cooperman made a bet on NRG Energy (NRG) during the quarter.Meanwhile, Moore Capital was a seller of utility stocks such as PPL Corp. (PPL), Westar Energy (WR), Consolidated Edison (ED) and Pinnacle West (PNW). Paulson & Co. made a big sale of Genon Energy (GEN) during the quarter. York Capital Management dumped a large stake in CenterPoint during the quarter. Quant fund Renaissance Technologies liquidated 21 positions in utilities stocks during the quarter, selling shares of Southern Company (SO), PG&E (PCG), Pinnacle West, and Duke Energy (DUK), among others. >>To see these stocks in action, visit the Utilities Stocks Bought and Sold by Hedge Funds portfolio on Stockpickr. -- Written by Robert Holmes in Boston.
>To contact the writer of this article, click here: Robert Holmes. >To follow Robert Holmes on Twitter, go to http://twitter.com/RobTheStreet. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV