Four Beaten Down, Activist-Owned Energy Stocks

April 23, 5:00 pm EST

Yesterday we talked about the big recovery in crude oil prices.  That continues today.

However, the energy sector remains the worst performing sector over one-year and five-years.  And it’s the only sector still in the red over the past five-years — down 27%.

Let’s take a look again at the how the constituents of the S&P’s energy ETF have performance over the past five years.  And then we’ll take a look at the stocks in this group that have been vetted and are now owned by the best billionaire activist investors…


Devon Energy (DVN)

Billionaire Paul Singer of Elliott Management is one of the best activist investors in the world.  He has one of the longest tenures in the business, dating back to the 70s.  And he’s had one of the hottest hands on Wall Street over the past few years.

Singer’s fund, Elliott Management, owns 4% of Devon.  It’s the eighth biggest long position in the portfolio.  Devon is down 52% over the past five years.

Hess Corp. (HES)

Singer and his team are the fourth largest shareholder in Hess.  They have a 7% stake in Hess.  And it’s a big position in the Elliott portfolio — a top five position representing over 7% of the portfolio.   Hess is down 25% over the past five years.

Pioneer Natural Resources (PXD)

Billionaire Seth Klarman has been called the next Warren Buffett.  His fund, Baupost Group, is the sixth largest shareholder of Pioneer.  Klarman has 5% of his portfolio invested in this stock.  Pioneer is down 14% over the past five years.

Diamondback Energy (FANG)

Billionaire Carl Icahn owns 6% of DiamondBack.  It’s a half a billion dollar stake in his $20 billion portfolio (all his money).  Diamondback is up 46% — and already up 22% from when Icahn entered in the fourth quarter.

These are the best value investors in the world, betting on a comeback in this sector and in these stocks.  No surprise, aside from Icahn’s stake, they like to hunt in some of the most beaten down names.

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