(Clarifies that allocations to energy rose 1.1%, and returns totaled 16%.)BOSTON ( TheStreet) -- Hedge fund firms' allocations to energy investments rose only 1.1% in the first quarter, even as oil stocks jumped, suggesting managers trimmed their stakes to lock in profits or avoid losses on expectations economic growth would slow. Based on market value, energy stocks made up 12.7% of holdings of 2,918 hedge funds tracked by Bloomberg at the end of the first quarter, behind financials (21%) and information technology (17%). Industrials were the only other sector to show growth in the period, but at a mere 0.2%.
Chevron ( CVX - Get Report), the fourth-biggest stock by market value held by the funds, at $130 billion, saw buying of 12 million of its shares in the first quarter and its value within the funds rose by $21 billion. The increase is due to share-price appreciation and the increased number of shares. Chevron, with a total market value of $201 billion, owns exploration, production and refining operations worldwide. Chevron shares are up 12% this year and 34% over the past 12 months. And its shares are up 5% over the past three months, while the integrated oil-and-gas companies' sector is down 8.3%, as tracked by Morningstar.