In this article, we discuss the 10 oil and gas stocks to buy in billionaire Steve Cohen’s portfolio. If you want to skip our detailed analysis of these stocks, go directly to the 5 Oil and Gas Stocks in Billionaire Steve Cohen’s Portfolio.
Steve Cohen is an American investor, businessman, philanthropist, and avid art collector. He is currently the Chairman, CEO, and Founder of Point72 Asset Management. He was born on June 11, 1956, in New York. His father worked as a manufacturer in Manhattan’s Garment Centre. Steve Cohen mainly gives credit to his high school poker playing days for teaching him risk-taking strategies.
Steve Cohen received his undergraduate degree in economics from Wharton School at the University of Pennsylvania in 1978. Soon after receiving his degree, he started working as a junior trader at Gruntal & Co and made an $8000 profit on the first day of his job. Cohen worked at Gruntal &Co. till 1992, in between which he managed to run his own trading group at the firm with a $75 million portfolio.
Point72 Asset Management is based in Stamford, Connecticut, and invests in discretionary long/short, macro, and systematic strategies. The fund has around 1500 employees and $117.54 billion in discretionary assets under management. According to the third-quarter 2021 13F filings, Point72 Asset Management had $22.768 billion in managed 13F securities. In the third quarter, the fund made 381 new stock purchases and increased holdings in 304 stocks. Moreover, the fund sold out of 307 stocks and reduced holdings in 255 stocks.
Meta Platforms, Inc. (NASDAQ:FB), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V) are some of the most significant names in the Point72 Asset Management portfolio.
Our Methodology
With this context in mind, here is a list of 10 oil and gas stocks in billionaire Steve Cohen’s Point72 Asset Management portfolio. The stocks have been picked from Point72 Asset Management’s portfolio.
The hedge fund sentiment around each stock has been taken from the data of 867 hedge funds tracked by Insider Monkey. Analyst ratings and business fundamentals have also been added to help readers understand the stocks better.
10 Oil and Gas Stocks in Billionaire Steve Cohen’s Portfolio
10. Equinor ASA (NYSE:EQNR)
Point72 Asset Management’s Stake Value: $34.33 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 11
Equinor ASA (NYSE:EQNR) is a state-owned Norwegian petroleum company. Moreover, the company also has investments in the renewable energy sector and operates in 36 countries around the world. The company has around 170 million customers and houses more than 20,000 employees.
According to the third quarter 2021 13F filings, Point72 Asset Management owns 1.346 million shares of Equinor ASA (NYSE:EQNR) worth $34.33 million, comprising 0.15% of the fund’s portfolio. Although the fund has decreased its activity in the company by 20% in the third quarter.
According to Insider Monkey’s hedge fund database, 11 hedge funds held stakes worth $163.32 million in Equinor ASA (NYSE:EQNR) in the third quarter of 2021.
Meta Platforms, Inc. (NASDAQ:FB), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V) are some of the notable names along with Equinor ASA (NYSE:EQNR) in Point72 Asset Management’s portfolio.
Massif Capital mentioned Equinor ASA (NYSE:EQNR) in their second-quarter 2021 investor letter. Here is what the firm said:
“We currently have two oil-related positions in our portfolio and believe the oil opportunity set is ripe. As one might expect, both positions, (including Equinor: EQNR) performed well during the second quarter, given the steady march higher that oil has made in recent months. We maintain a positive outlook for both companies, although, importantly, our posture is not predicated on an expectation for continued oil price appreciation. This is not because of our inability to imagine scenarios where that does occur, but more out of an abundance of caution for what is a highly volatile commodity that at current price levels should be more than sufficient to generate ample free cash flow for any investable oil firm.
In the future, we expect both firms in the portfolio to generate significant free cash flow and expect EQNR to reinvest that free cash flow into a combination of offshore oil and wind opportunities with high rates of return. The path forward for AOI is more complicated and does warrant a few comments.”
9. Suncor Energy Inc. (NYSE:SU)
Point72 Asset Management’s Stake Value: $34.36 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 32
Suncor Energy Inc. (NYSE:SU) is an integrated energy company founded in 1919 and headquartered in Calgary, Alberta, Canada. The company develops and produces oil and natural gas in some parts of North America, the North Sea, Libya, Syria, Tobago and Trinidad. Suncor Energy Inc. (NYSE:SU) has around 12,600 employees and ranks at 647 in Forbes Global 2000 in 2021.
At the end of the third quarter of 2021, the EPS of Suncor Energy Inc. (NYSE:SU) was $0.57 as estimated by the analysts. Although, the company missed the revenue estimates after generating $8.26 billion compared to $8.35 billion forecasts.
On November 19, Suncor Energy Inc.’s (NYSE:SU) price target was raised by Scotiabank analyst Jason Bouvier to $37 up from $33 and the analyst kept an Outperform rating on the company’s shares.
8. Targa Resources Corp. (NYSE:TRGP)
Point72 Asset Management’s Stake Value: $35.30 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 26
Targa Resources Corp. (NYSE:TRGP) is a Texas-based energy infrastructure company. The company mainly transports, stores, and does wholesale marketing of natural gas and natural gas liquids and is one of the largest midstream energy infrastructure companies in the United States. Targa Resources Corp. (NYSE:TRGP) is a Fortune 500 company that employs close to 2,400 people.
According to 2021 13F filings for the third quarter, Point72 Asset Management owns 717,388 shares of Targa Resources Corp. (NYSE:TRGP) worth $35.30 million, representing 0.15% of the fund’s portfolio.
Out of 867 hedge funds tracked by Insider Monkey, 26 of them hold stakes in Targa Resources Corp. (NYSE:TRGP) worth $567.25 million.
7. WEC Energy Group, Inc. (NYSE:WEC)
Point72 Asset Management’s Stake Value: $40.21 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.17%
Number of Hedge Fund Holders: 31
WEC Energy Group, Inc. (NYSE:WEC) is an American diversified utilities company headquartered in Wisconsin, United States. The company has around 4.4 million electricity and natural gas customers in Wisconsin, Illinois, Minnesota, and Michigan.
As of the third quarter of 2021, Israel Englander’s Millennium Management holds the largest stake in WEC Energy Group, Inc. (NYSE:WEC) 1.07 million shares worth $94.45 million, making up about 0.05% of Millennium Management’s portfolio.
6. Ovintiv Inc. (NYSE:OVV)
Point72 Asset Management’s Stake Value: $43.06 million
Percentage of Point72 Asset Management’s 13F Portfolio: 0.18%
Number of Hedge Fund Holders: 44
Ovintiv Inc. (NYSE:OVV) is Canada’s largest hydrocarbon exploration company. It is headquartered in Calgary, Alberta and it mainly focuses on petroleum, natural gas, and natural gas liquids. The company owns around 1.68 million net acres of land in Canada. In 2019, Ovintiv Inc. (NYSE:OVV) acquired the Texas-based Newfield Exploration after selling its assets in San Juan Basin.
At the end of the third quarter of 2021, the EPS of Ovintiv Inc. (NYSE:OVV) was $1.50 compared to $1.51 forecasts. Furthermore, the company also missed the revenue estimates by $134.55 million after generating $1.79 billion, compared to $1.92 billion estimates.
On October 26, Mizuho analyst Vincent Lovaglio raised the price target of Ovintiv Inc. (NYSE:OVV) from $42 to $54 and kept a Buy rating on the company’s shares. Due to unconventional oil growth in the United States, the analyst increased the price target of several companies related to hydrocarbon exploration.
Ovintiv Inc. (NYSE:OVV) is one of the important companies besides Meta Platforms, Inc. (NASDAQ:FB), Microsoft Corporation (NASDAQ:MSFT), and Visa Inc. (NYSE:V) in Point72 Asset Management’s portfolio.
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Disclosure. None. 10 Oil and Gas Stocks in Billionaire Steve Cohen’s Portfolio is originally published on Insider Monkey.
