Occidental Petroleum Corporation (NYSE:OXY) a good place to invest some of your money right now? We can gain valuable information to help us answer this question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who have immense resources and contacts in the world. industry to put their financial expertise to good use. The best picks from these companies have historically outperformed the market when we factor in known risk factors, making them very valuable investment ideas.
Is OXY a good stock to buy? Occidental Petroleum Corporation (NYSE:OXY) has seen an increase in interest from hedge funds in recent months. Occidental Petroleum Corporation (NYSE:OXY) was in 52 hedge fund portfolios at the end of the first quarter of 2021. The all-time high for this statistic is 62. Our calculations have also shown that OXY is not among the 30 most popular stocks among hedge funds (click for Q1 ranking).
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Do hedge funds think OXY is a good stock to buy now?
Heading into the second quarter of 2021, a total of 52 of the hedge funds tracked by Insider Monkey were long on this stock, a 6% change from the previous quarter. On the other hand, there were a total of 35 hedge funds with a bullish position on OXY a year ago. With the smart money sentiment whirlwind, there is a “next level” of key hedge fund managers who were increasing their stakes significantly (or already building up large positions).
More precisely, Icahn Capital LP was the largest shareholder in Occidental Petroleum Corporation (NYSE: OXY), with a stake valued at $ 2,290 million reported at the end of March. Icahn Capital LP was behind Icahn Capital LP, which raised a stake valued at $ 229.9 million. Appaloosa Management LP, Citadel Investment Group and Paulson & Co were also very attached to the stock, becoming one of the largest hedge fund holders in the company. In terms of the portfolio weights assigned to each position, Icahn Capital LP assigned the largest weight to Occidental Petroleum Corporation (NYSE: OXY), approximately 9.6% of its 13F portfolio. Arosa Capital Management is also relatively very bullish on the stock, allocating 5.27% of its 13F equity portfolio to OXY.
As interest from across the industry increased, key fund managers were behind this optimism. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, formed the largest buy position in Occidental Petroleum Corporation (NYSE: OXY). Marshall Wace LLP had invested $ 50.5 million in the business at the end of the quarter. that of Bruce Kovner Caxton Associates LP also initiated a $ 44 million position during the quarter. Other funds with brand new OXY positions are Point72 Asset Management by Steve Cohen, DSAM Partners by Guy Shahar and Key Square Capital Management by Scott Bessent.
Let’s review hedge fund activity in other stocks similar to Occidental Petroleum Corporation (NYSE: OXY). These shares are Deutsche Bank AG (NYSE:Comics), Expedia Group Inc (NASDAQ:EXPED), Carnival Corporation & plc (NYSE:CUK), Maxim Integrated Products Inc. (NASDAQ:MXIM), DraftKings Inc. (NASDAQ:DKNG), Arthur J. Gallagher & Co. (NYSE:AJG) and Nasdaq, Inc. (NASDAQ:NDAQ). All market capitalizations of these stocks correspond to the market capitalization of OXY.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of position HF DB, 16,1773587,0 EXPE, 86,6157292,10 CUK, 4,105412, -3 MXIM, 55,3238393,1 DKNG, 43 966256, -5 AJG, 24.283959.0 NDAQ, 22.236137, -5 Medium, 35.7.1823005, -0.3 [/table]
See the table here if you have formatting problems.
As you can see, these stocks had an average of 35.7 hedge funds with bullish positions and the average amount invested in these stocks was $ 1,823 million. That figure was $ 3,418 million in the case of OXY. Expedia Group Inc (NASDAQ:EXPED) is the most popular action in this table. On the other hand, Carnival Corporation & plc (NYSE:CUK) is the least popular with only 4 bullish hedge fund positions. Occidental Petroleum Corporation (NYSE: OXY) isn’t the most popular stock in this group, but hedge fund interest is still above average. Our overall hedge fund sentiment score for OXY is 62.4. Stocks with a higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal, but we prefer to spend our time researching the stocks on which hedge funds are accumulating. Our calculations have shown that top 5 most popular stocks among hedge funds, returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 17.2% in 2021 through June 11 and again beat the market by 3.3 percentage points. Unfortunately, OXY was not as popular as these 5 stocks and the hedge funds that bet on OXY were disappointed as the stock has returned 6.5% since the end of March (through 6/11) and has underperformed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds, as many of these stocks have already outperformed the market since 2019.
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Disclosure: none. This article originally appeared on Monkey initiate.