Top Energy Stocks Picked By Hedge Funds in 1Q

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The top fifty hedge funds appeared to have increased exposure in energy stocks in the March quarter. Williams Companies Inc (NYSE:WMB), Cheniere Energy, Inc. (NYSEMKT:LNG), and Energy Transfer Partners LP (NYSE:ETP) are some of the stocks picked up by them in the same period. However, information technology and consumer discretionary remained the top with average holdings of 17.4% and 16.8% respectively by the hedge fund companies in the March quarter.

Exposure Dropped

According to FactSet Research Systems Inc. (NYSE:FDS) data, there were only two sectors that witnessed a drop in exposure in the top 50 hedge funds holdings. The research firm identified Telecom Services and Utilities sectors that failed to find favor among the hedge fund managers in the first quarter.

The hedge funds have also lowered their exposures in consumer staples, financials and information technology, which were rated as the most underweight sectors by FactSet. While Consumer Stables witnessed a drop in holdings to 6.1% from 9.7%, exposure in financial sector slipped to 13.4% from 16.2%. The top funds exposure in Information Technology also dipped to 17.4% from 19.7% though it remained top.

On the other hand, the exposure to the energy sector was 11.4% compared to 8.0% previously. Both energy and consumer discretionary sectors were rated as the most overweight sectors.

Biggest Sale

Actavis plc (NYSE:ACT) and Medtronic PLC (NYSE:MDT) were not favored by the hedge fund managers as they started selling the stock in both the counters. The market value sold in respect of Actavis was estimated to be about $3.2 billion in the first quarter. Incidentally, the two companies stock was the top sale for two of the fifty hedge fund firms.

However, Actavis plc (NYSE:ACT) remained the third biggest holding in the average portfolio of the hedge fund firms. While Actavis share price witnessed 15.6% upside, Medtronic stock witnessed 15.6% growth in the March quarter. Hedge Funds also sold shares worth $3 billion in Medtronic PLC (NYSE:MDT).

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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