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We are long-term bullish about oil and oil services stocks. Oil services stocks provide the equipment, services and distribution to get the oil to consumers, industrial and residential. Companies in this industry are the ones that own the pipelines, drilling services and processing services that get the job done. As such, as investments, they tend to have slow but steady growth and modest dividends and for this, investment vehicles like hedge funds love them.

While investors should always do their own research, here is a list of seven companies in the oil equipment and services industry to use as a starting point. Each of the companies on this list fit the traditional oil and equipment services profile of slow growth and modest dividends. They also enjoy a high level of hedge fund interest.

El Paso Corp. (EP) was a popular investment with hedge funds during the third quarter. Of the 300+ hedge funds we track, 35 had positions in EP at the end of September. Their total holdings combined weighed in at $2.51 billion, compared to $1.81 billion at the end of the second quarter. Carl Icahn’s Icahn Capital, Jean-Marie Eveillard’s First Eagle Investment, George Soros’ Soros Fund Management, Leon Cooperman’s Omega Advisors and Daniel Loeb’s Third Point each held significant positions in EP at the end of the third quarter. El Paso gained 46% since the end of September, bolstered largely by Kinder Morgan's (KMI) announcement in October that it would acquire the company in a deal worth over $20.7 billion, a deal that would make Kinder Morgan the largest natural gasoline operator in the U.S.

Halliburton Co. (HAL) was even more popular. At the end of the third quarter, 47 hedge funds had positions in the company, compared to 44 at the end of the second quarter. Unfortunately, the total holdings of these funds did slide a bit, from $1.43 billion at the end of June to just $966.19 million at the end of September. Ray Dalio’s Bridgewater Associates, Ken Fisher’s Fisher Asset Management, George Soros’ Soros Fund Management, T. Boone Pickens’ BP Capital and Ken Heebner’s Capital Growth Management are fans of HAL.

Schlumberger Ltd. (SLB) was in 42 hedge fund portfolios at the end of the third quarter, down from 51 at the end of the second quarter – but still nothing to sneeze at! Collective hedge fund stakes in the company fell from $2.71 billion to $2.08 billion, a sharp decline but still significant. Stephen Mandel’s Lone Pine Capital had almost 3% of its portfolio invested in SLB at the end of September. T. Boone Pickens’ BP Capital, Andreas Halvorsen’s Viking Global, Ken Fisher’s Fisher Asset Management and Jean-Marie Eveillard’s First Eagle Investment owned significant stakes in SLB.

Baker Hughes Inc. (BHI) was at the forefront of 36 funds as of the end of the third quarter, compared with 35 the previous quarter. The total size of these positions weighed in at $1.20 billion, falling from $1.50 billion at the end of June. Jean-Marie Eveillard’s First Eagle Investment and John Griffin’s Blue Ridge Capital both had significant positions in BHI at the end of the third quarter.

Helmerich & Payne Inc. (HP) was a holding in 21 hedge fund portfolios at the end of September, the same number that were invested in the company at the end of June. However, the volume of those hedge funds’ investments fell sharply between the quarters, from $759.64 million to $492.09 million. HP is a favorite holding for Jean-Marie Eveillard’s First Eagle Investment, Ray Dalio’s Bridgewater Associates and Ken Fisher’s Fisher Asset Management.

Noble Corp. (NE) had 18 funds invested in it at the end of the third quarter, compared with 20 at the end of the previous quarter. Those funds that stayed invested were a bit more bullish though. The total holding in NE amongst hedge funds increased from $278.65 million at the end of the second quarter to $321.22 million at the end of the third quarter. David Gallo’s Valinor Management, Jeffrey Vinik’s Vinik Asset Management and T. Boone Pickens’ BP Capital were fans of the company.

NationalOilwell Inc. (NOV) was a portfolio holding in 38 of the 300+ hedge funds we track at the end of the third quarter, up from 33 at the end of the second quarter. The value of the investments declined though. At the end of June, the total value of hedge fund positions sat at $1.78 billion. As of the end of September, that number is just over $1.07 billion. Ken Heebner’s Capital Growth Management, T. Boone Pickens’ BP Capital, Ray Dalio’s Bridgewater Associates and Ken Fisher’s Fisher Asset Management are fans of the stock.

Source: 7 Oil Services Stocks Hedge Funds Are Bullish On