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What do the top Hedge Fund and Mutual Fund Gurus like in the Integrated Oil and Gas group? This article, the thirty-fifth in a series, identifies through a research of the latest available institutional 13-F filings the Gurus that are most invested in the Integrated Oil and Gas group, and the specific stocks within that Industry that they prefer to hold in their portfolios.

The Integrated Oil and Gas group includes companies engaged in upstream, midstream and downstream activities in the oil and gas industry; upstream referring to the searching for and the recovery and production of crude oil and natural gas; midstream referring to the processing, storage, marketing and transport of crude oil, natural gas, natural gas liquids, and liquefied natural gas; and downstream referring to the refining of crude oil, and the selling and distribution of natural gas and products derived from crude oil such as liquefied petroleum gas, gasoline or petrol, jet fuel, diesel oil, other fuel oils, asphalt and petroleum coke.

Also, please note that this article will be among the last in this series, as the latest March 2011 quarter 13-F Institutional filings are now beginning to come out. About 40% were out as of this weekend, and most should be filed by the end of this week. As such, once 13-F filings are complete for all Guru funds, in the next series starting the beginning of next week, I will bring to you the ‘Top New and Added Picks’ of Guru Funds by industry/sector detailing this time not the top holdings, but more importantly what ‘New’ positions they took and what existing positions they added to in the latest March 2011 quarter. Please check my article page for previous articles in this series.
A Guru is defined as someone who is regarded as having great knowledge, wisdom, and authority in a certain area. When it comes to hedge funds, there are a number of ways to anoint leading managers as Gurus including long-term performance, low portfolio volatility and an elite reputation in the investment community.
Many of us are familiar with leading investors and hedge fund managers such as Warren Buffet, George Soros, Carl Icahn and Julian Robertson, but the hedge fund community alone includes over 9,000 funds; add in mutual funds, ETFs, and other investment entities and the number is likely to be at least two to three times that number. While there is no official list of Gurus, less than one percent or between 100 to 200 fund managers are commonly believed by the larger investment community to have earned the distinction of being called Gurus.
The study of the investing habits of Gurus can be informative as these are very savvy, well-respected investors with high personal net worth deploying large sums of capital from their funds on a regular basis. They have a long-term track record of success, and while one can easily just ride their coattails, the savvy investor may want to use these lists as a starting point to conduct their own due diligence.
The total capitalization of the US Equity markets is somewhere in the $15 trillion range, and the total market capitalization of leading Integrated oil and gas companies is $2.184 trillion or 14.6% of the overall market. The list includes many international companies that are also traded on the North American exchanges, and hence overall ‘Guru’ funds that are mostly U.S. based are under-invested in the group as a whole when compared to other groups analyzed previously. Narrowing down to just U.S. based Integrated Oil and Gas companies, the total market capitalization drops to $720 billion or 4.8% or roughly one-third of the market-cap of the entire group. Hence, in this case the top five investment Gurus whose funds have invested at least 7.5% or higher in the Integrated Oil and Gas group were evaluated. The following is a list of their top Integrated Oil and Gas Company picks:
  • Petroleo Brasileiro SA ADR (NYSE:PBR), a Brazilian company engaged in the exploration, production, supply, and distribution of oil and gas in Brazil and abroad.
  • Exxon Mobil Corp. (NYSE:XOM) engaged in the exploration, production, transportation and sale of crude oil and natural gas worldwide.
  • Suncor Energy Inc. (NYSE:SU), a Canadian energy company, engaged in oil and gas upstream and downstream businesses in Canada and globally.
  • BP Plc ADR (NYSE:BP), a British company engaged in the exploration, production, refining, marketing and transportation of oil and gas globally.
  • Chevron Corp. (NYSE:CVX) engaged in exploration, production and refining of oil and gas in the U.S. and worldwide.
  • Eni Spa ADS (NYSE:E), an Italian company engaged in the exploration, production, transportation, transformation, and marketing of oil and natural gas.
  • Total SA ADR (NYSE:TOT), a French company engaged in the exploration, production, refining, marketing, and transportation of crude oil and petroleum products globally.
  • Cenovus Energy Inc. (NYSE:CVE) engaged in the development, production and marketing of bitumen, crude oil, natural gas liquids in Canada with refining operations in the U.S.
  • YPF Sociedad Anonima (NYSE:YPF), an Argentine company engaged in the exploration, development, and production of crude oil, natural gas, and liquefied petroleum gas in Argentina. It is also involved in refining, marketing, transportation and distribution of oil and a range of petroleum products, petroleum derivatives, petrochemicals, liquefied petroleum gas, and bio-fuels; and also involved in gas separation and natural gas distribution operations.

Table
Fund and Guru
Type of Fund
Assets Under Management
Percent Equity Portfolio invested in Integrated Oil and Gas Companies
Major Integrated Oil and Gas company positions in Portfolio
Touradji Capital Management, LP (Paul Touradji)
Hedge Fund - Commodities Focused
$ 2.5 billion including $280 million in Equities
38.8%
PBR
Jabre Capital Partners (Philippe Jabre)
Asset Management including Hedge Fund
$ 1.7 billion
17.6%
XOM, PBR, SU
Woodbine Capital Advisors LP (Josh Berkowitz)
Hedge Fund - Global Macro
$ 440 million
12.1%
PBR, CVE
BP Capital Management, LP (T Boone Pickens)
Hedge Fund - Commodities Focused
$ 275 million
11.3%
BP, SU
Eton Park (Eric Mindich)
Hedge Fund - Multi-Strategy
$ 8.1 billion
7.5%
YPF, BP, PBR
Touradji Capital Management, LP, is a commodities-focused hedge fund founded by Paul Touradji. He previously worked as a trader from 1996 to 2000 in Julian Robertson's legendary Tiger Management.
Jabre Capital Partners, headquartered in Geneva was started by Lebanese-born Philippe Jabre in 2007. It is an asset management firm that offers both hedge fund and traditional management strategies.
Hedge fund Woodbine Capital Advisors was founded by Soros Fund Management alumni Josh Berkowitz and Marcel Kasumovich in 2009, and uses a global macro strategy to make its investments.
Legendary T Boone Pickens who has made his money as 'oil' man recently may have caught our attention when he focused his advocacy on Alternative Energy such as solar and wind through a series of paid advertisements in various media outlets that outlined the 'Pickens Plan' for American energy independence. He is a billionaire, worth $2.5 billion and is the chair of BP Capital Management.
Eton Park Capital Management launched in 2004 and has over $12 billion in assets under management (AUM). Prior to founding Eton Park, Mr. Mindich was a partner at Goldman Sachs, becoming the youngest partner there at the age of 27. Investors in the fund generally have committed their capital for between three and five years, which is considerably longer than the quarterly redemption notices characteristic of many hedge funds.
Credit: Historical fundamentals including operating metrics and stock ownership information were derived using I-Metrix® by Edgar Online®, Zacks Investment Research, DailyGraphs®, Thomson Reuters and Briefing.com. Fund data including assets under management and firm profiles are sourced mostly from Hedgetracker.com. The information and data is believed to be accurate, but no guarantees or representations are made.
Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are my opinions and I may be wrong. I may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to my thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Source: Top Integrated Oil and Gas Picks by Fund Gurus Concentrated in the Sector