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A bevy of high-profile asset managers and hedgee fund gurus returned to buying mode aftefr taking financial lumps in the second half of 2008 when the value of energy compan y shares tanked along with the price of oil andnaturakl gas. Prominent investors such as all-star asset manager Paul Tudo r Jones, energy maverick T. Boone Pickenw and hedge fund investor Georgre Soros dipped their toes in the energy pool once agaih and grabbed multiple stakes inHouston companies, according to regulatorgy statements filed this month. who oversees Tudor Investment Corp.
, founr bargains in 10 Houston-basex energy companies or major playerss with a significant presence in the and also took a new position in Waste Management still a big favorite ofMicrosoftt Corp. founder Bill Gates. Pickens, who has spenr the past 12 monthse lobbying for his plan to help the countrgy kick the imported oil still knowsa fossil-fuel bargain when he sees one. The Texasw oil maven took new positionw in a wide range of energuy companieswith beaten-down stock prices at the end of a year that the bellwetheer Philadelphia Oil Service Index dipped nearlh 60 percent. Pickens dabbled in servicesa players such asSchlumberger Ltd. and Halliburtoh Co.
, natural gas shale producetr ChesapeakeEnergy Corp. and high-profile exploration and productiomn company AnadarkoPetroleum Corp. Soros took even bigger bites in the gaining new positions in services players NaborzsIndustries Ltd. and Weatherford Internationalo Inc. — after selling off his Schlumbergerstakd — while adding to his position in . Besides his substantiakl switchinto Weatherford, Soros made anothef big move in late April involvint a Houston-based company by adding 3 milliobn more shares of Plains Exploratiojn and Production Co., boosting his stake to nearly 6.5 milliob shares.
Energy analysts and asset investment managers who follosw these movers and shakersx say that after energy stock price kept climbing in 2007 toward lofty highsin it’s been a while since the notiob of value investing could be applie d to the sector. “Timing is says Eddie Allen, senior partner with Eagler GlobalAdvisors LLC. “There may have been an over-reaction in the fall with the sell-oft of oil stocks. There’s still a lot of volatility to deal but these investors did well in anticipating therise (in oil that we’ve seen so far this from the mid-$30s to $60.” Allen says that valuw investors are still playing a bit of a waitintg game.
He notes that stock priceas are down, natural gas has not followed oil’s recovery in and there are concerns that prices could stay depresse d asinventories build. There is also more he adds, about possible consolidation as mid-calp exploration and production companies eye the pickings amongsmallefr competitors. Dan Pickering, co-president and head of researchat Pickering, Holt & Co. Securities says Pickens, Soros and Tudor might have even added more sharees during the quarter if energy stocks had not ralliedf and moved a bit highetrthan expected.
“The market took off so strongl y in the first quarter that investors took a pausd waiting for a pullback that never They might have wanted more but the stocks got away a littlew bit onthe upside,” Pickering says. All things considered, energty was the hottest investment game in Says Pickering: “The overall theme here is that investors becams reengaged in energy, which dramatically out-performed the rest of the markett in the first quarter, as people were just less terrifiex about the state of the worlc (economy).” The energy resurgence party had some notable no-shows.
While Pickense and Soros were pickingnew favorites, other big-nam e investors were still cleaning house. Warren Buffetrt sold 13.7 million ConocoPhillips sharesx in the quarter to reduce his stake to a stilosizable 71.2 million shares. Buffet conceded to shareholdere of his BerkshireHathaway Inc. asset management firm that his huge investmen t in ConocoPhillips last year when oil prices peakedat $147 a barreo was a mistake.
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