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What do the top Hedge Fund and Mutual Fund Gurus like in the Oil and Gas Equipment and Services group? This article, the thirty-sixth in a series, identifies through a research of the latest available institutional 13-F filings the Gurus that are most invested in the Oil and Gas Equipment and Services group, and the specific stocks within that Industry that they prefer to hold in their portfolios. The group includes manufacturers of machinery and equipment for the Oil and Gas industry, including Drilling Equipment; and also providers of a wide array of services to the Oil and Gas industry including site preparation, surveying, drilling, and helicopter transportation.

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 Oil and Gas Equipment and Services companies is $460 billion or 3.07% of the overall market. The Table lists the top five investment Gurus whose funds have invested at least three times that average or 9.2% or higher in the Oil and Gas Equipment and Services group. The following is a list of the top Oil and Gas Equipment and Services picks of Guru Funds over-concentrated in that group:
  • Weatherford International Ltd. (WFT) provides mechanical products, technology and services for the oil and gas drilling and production industry worldwide.
  • Noble Corp. (NE), a Swiss company engaged in offshore contract drilling services for the oil and gas industry worldwide.
  • National Oilwell Varco (NOV) engaged in the manufacture and sale of systems, components, and products to the oil and gas industry worldwide.
  • Halliburton Company (HAL) provides reservoir completion and drilling services and products worldwide to the upstream oil and gas industry.
  • Baker Hughes Inc. (BHI) provides wellbore products and technology services and systems to the global oil and natural gas industry.
  • Nabors Industries Ltd. (NBR) provides oil, gas and geothermal land drilling, land well and work-over services worldwide.
  • Schlumberger Ltd. (SLB) provides technology services, project management and information solutions to petroleum industry worldwide.
  • Oceaneering International Inc. (OII) provides deepwater engineering services and products to offshore oil and gas industry.
  • Dawson Geophysical Co. (DWSN) provides onshore seismic data acquisition services primarily to oil and gas companies in the lower 48 states of the U.S.
  • Willbros Group Inc. (WG) provides engineering, procurement, construction and specialty services to oil and gas, power and petrochemical industries.
  • Ensco Plc (ESV), a U.K. company providing offshore contract drilling services in Europe, Africa, Asia Pacific, Americas and Australia.
  • Atwood Oceanics Inc. (ATW) engaged in international offshore contract drilling and completion of exploratory and development oil and gas wells.
  • FMC Technologies Inc. (FTI) designs, manufactures and services systems and products for land and offshore exploration and production of oil and gas.
Table
Fund and Guru
Type of Fund
Assets Under Management
Percent Equity Portfolio invested in Oil and Gas Equipment and Services Companies
Major Oil and Gas Equipment and Services company positions in Portfolio
BP Capital Management, LP (T Boone Pickens)
Hedge Fund - Commodities Focused
$275 million
26.7%
WFT, NE, NOV, OII, HAL, DWSN
Balyasny Asset Management (Dmitry Balyasny)
Hedge Fund - Multi-strategy
$1.8 billion
14.7%
HAL, BHI, NBR, WG
Woodbine Capital Advisors LP (Josh Berkowitz)
Hedge Fund - Global Macro
$440 million
11.7%
SLB, NOV
First Pacific Advisors
Mutual Fund
$6.0 billion
10.4%
ESV, BHI, ATW, NE, FTI
Capital Growth Management LP (Ken Heebner)
Mutual Fund Manager
$6.8 billion
9.5%
SLB, HAL, NOV
Greenlight Capital Inc. (David Einhorn)
Hedge Fund - Shareholder Activist
$5 billion
9.2%
ESV
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.
Chicago-based Hedge Fund Balyasny Asset Management, founded by Dmitry Balyasny in 2001, is a multi-strategy manager that combines fundamental sector research and trading with a dynamic capital allocation system.
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.
Ken Heebner, co-founder of Capital Growth Management, manages the CGM family of mutual funds. He has a reputation of making bold sector bets, and was on the cover of the June 9, 2008 issue of Fortune magazine, and was called as America's hottest investor.
Hedge Fund Greenlight Capital, founded in 1996 by David Einhorn, manages a series of value-oriented alternative investment vehicles including hedge funds and reinsurer Greenlight Capital Re. He focuses on intrinsic value in making their investments, which is generally calculated by summing the future income generated by an asset and discounting it to the present value, and is thus different from the more commonly used market value and book value of the security. He is also a shareholder activist investor, meaning that the fund can take large stakes in target investments and then can use its influence resulting from the ownership to effect change at these companies, with the objective of eventually selling them for a tidy profit.
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 Energy Equipment and Services Picks by Fund Gurus