New York (HedgeCo.net) – Just last week, we featured an article about the hedge fund managers on the HedgeCoVest platform and how they had become more bullish on oil and gas stocks in recent weeks. We pointed to evidence within the HedgeCoVest Energy and Utilities Long/Short composite model that showed how the percentage allocated to oil and gas stocks had gone from 20% in early July to 56.1% on August 7.

According to a recent Reuters’ article, other hedge fund managers are making similar moves as well. The article cites major hedge funds such as Baupost, Omega Advisors, Hayman Capital, Jana and Third Point all added energy holdings during the second quarter.

The Energy Select Sector SPDR was down 2.48% during the second quarter and has continued to fall so far in the third quarter. The fact that the managers on the HedgeCoVest platform were shying away from oil and gas stocks early in the third quarter and didn’t start adding to their energy holdings until the past month may help the overall performance of the composite models compared to hedge funds mentioned in the Reuters article.

Rick Pendergraft
Research Analyst
HedgeCoVest