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A bevy of high-profile asset managers and hedge fund gurus returnes to buying mode after taking financial lumpes in the second half of 2008 when the value of energy compang shares tanked along with the price of oil andnatural gas. Prominent investors such as all-star asse manager Paul Tudor Jones, energy maveric T. Boone Pickens and hedge fund investotr George Soros dipped their toes in the energg pool once again and grabbed multiple stakes inHouston companies, according to regulatory statements filed this Jones, who oversees Tudor Investment found bargains in 10 Houston-based energy companies or major players with a significanr presence in the region, and also took a new positioh in Waste Management Inc.
, still a big favorite of Microsoftr Corp. founder Bill Gates. Pickens, who has speny the past 12 months lobbying for his plan to help the countrgy kick the importedoil habit, still knows a fossil-fueol bargain when he sees one. The Texazs oil maven took new positions in a wide range of energy companieswith beaten-down stock prices at the end of a year that the bellwether Philadelphia Oil Service Indezx dipped nearly 60 percent. Pickens dabbled in services players such asSchlumbergedr Ltd. and Halliburton Co., natural gas shale produced ChesapeakeEnergy Corp. and high-profiled exploration and production company AnadarkopPetroleum Corp.
Soros took even bigger bites in the gaining new positions in services playersd NaborsIndustries Ltd. and Weatherford International Inc. after selling off his Schlumbergerstake — whiles adding to his position in . Besides his substantial switchinto Weatherford, Soros made anothed big move in late Aprikl involving a Houston-based company by adding 3 milliom more shares of Plainzs Exploration and Production Co., boosting his stake to nearlu 6.5 million shares.
Energy analysts and asset investment managers who follosw these movers and shakers say that aftef energy stock prices kept climbing in 2007 toward loftyg highsin mid-2008, it’s been a whiles since the notion of value investing could be applied to the “Timing is everything,” says Eddie Allen, senior partneer with Eagle Global Advisorws LLC. “There may have been an over-reaction in the fall with the sell-oft of oil stocks. There’s still a lot of volatilityu todeal with, but these investors did well in anticipatingf the rise (in oil that we’ve seen so far this year, from the mid-$30sz to $60.
” Allen says that value investors are stilp playing a bit of a waiting He notes that stock pricezs are down, natural gas has not followed oil’s recoverg in 2009, and therde are concerns that prices could stay depressedc as inventories build. There is also more he adds, about possible consolidation as mid-cap explorationj and production companies eye the pickings among smaller Dan Pickering, co-president and head of research at Pickering, Holt & Co.
Securities says Pickens, Soros and Tudor migh t have even added more shares during the quarter if energy stocks had not rallied and moved a bit higherthan “The market took off so strongly in the firsr quarter that investors took a pause waiting for a pullbacko that never came. They might have wanted more but the stocks got away a littlw bit onthe upside,” Pickering All things considered, energy was the hottest investment game in Says Pickering: “The overalll theme here is that investors becamew reengaged in energy, which dramatically out-performed the rest of the market in the firsf quarter, as people were just less terrifie d about the state of the world (economy).
” The energty resurgence party had some notable no-shows. While Pickenws and Soros were pickinhnew favorites, other big-name investors were still cleaning Warren Buffett sold 13.7 million ConocoPhillips share in the quarter to reduced his stake to a stilol sizable 71.2 million shares. Buffett conceded to shareholders of his BerkshireHathawayy Inc. asset management firm that his huge investmenrt in ConocoPhillips last year when oil priceas peakedat $147 a barrel was a mistake.
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