Market wisdom typically says buy when others are afraid to buy.
Looks like some top hedge fund managers are following that advice, adding to their stakes in energy companies. Oil prices are down about 60% from a year ago and the S&P 500 energy index is down 2.6% in the second quarter and 13.7% for the year. Many of the companies the funds are buying are approching multi-year lows, Reuters reports.
Among the buyers:
- Seth Klarman’s Baupost: 1.5 million shares, boosting its stake t0 15.4 million, worth $1.1 billion at quarter end. Also in its portfolio: Pioneer, up 900,000 shares to 4.1 million, or $564 million.
- Leon Cooperman’s Omega Advisors: 120,000 shares of Cheniere. Omega also bought 1.8 million shares in Gulfport Energy Corp., a new position, It sold its 24.3 million share stake in SandRidge Energy.
- Carl Icahn: 1.1 million shares in second quarter in Cheniere; since then he filed that he owned an 8.2 percent stake in Cheniere, a total of 19.4 million shares.
- Kyle Bass’s Hayman Company: Added to five fracking companies, including 528,000 shares in Whiting Petroleum , boosting its stake to 553,000 shares. Whiting shares rose 8.7% last quarter but have since nosedived 43%.
- Magnetar: 3.2 million shares in Energy Transfer Partners, boosting its stake to 3.4 million shares.
- Barry Rosenstein’s Jana: 725,00 shares in Tall grass Energy, a new position.
- David Einhorn’s Greenlight: 2.3 million shares of of Consol Energy, raising the stake to 22.8 million shares. Einhorn had previously stated that he is shorting Pioneer.
- Daniel Loeb’s Third point: New stakes in Devon Energy Corp. of 3.8 million shares and 1.5 million in Williams Companies.
Photo: Insider Monkey