8/19/14 08:00:00: Hudge Funds Resdiscover Energy, Health Care Sectors (Again)-- Barron's Blog
George Soros' firm bought a big stake in Consol Energy (CNX). Elliott Management picked up Anadarko Petroleum (APC).
Those are just two headline items from major investors' newfound love for the energy sector during the second quarter -- with a similar trend taking place in hedge-fund pickups of healthcare stocks.
Bill Ackman's Pershing Square Capital Management and Paulson & Co. were among hedge-fund firms increasing or entering upon new stakes in Allergan (AGN).
Hedge funds have "moved to overweight on the energy and health-care sectors," ISI Group quantitative strategist Pankaj Patel writes to clients this morning.
Sure, maybe they're all explainable as bets on promising companies, with little or no macro read-through. Then again, there's no denying the broader pattern: These companies are situated in places with price momentum.
Health care remains the top-performing S&P 500 sector during 2014, edging out technology. Energy is #5. Over the trailing twelve months, they're #2 and #4, respectively.
Energy Select Sector SPDR Fund (XLE), the energy-sector tracker, is among hedge fund managers' most popular and widely owned ETFs, an analysis of about 250 hedge-fund firm's second-quarter portfolio disclosures this week by asset manager AlphaClone shows.
Among energy stocks, Cheniere Energy (LNG), Halliburton (HAL), YPF Sociedad (YPF) and Devon Energy (DVN) rank alongside Anadarko as the popular energy-sector holdings.
More at Barron's Focus on Funds blog, blogs.barrons.com/focusonfunds/
(END) Dow Jones Newswires
08-19-14 1000ET
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