Dan Loeb says he's boosting oil and gas positions and warns the bottom might not be in for tech stocks

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Dan Loeb says he is boosting his holdings in the only part of the market that's hot: oil and gas.

Energy has been the best performing sector of the S&P 500 with a blistering 49% surge this year, as the broader index SPX has dropped 13%.

In an investment letter, Loeb, the chief executive of the hedge fund firm Third Point, says U.S. oil and gas companies are “particularly interesting” because they benefit from ill-conceived energy policies in most developed countries, including the U.S. Loeb said he extended the position in Shell SHEL SHEL that Third Point initiated last fall, as he pushes the energy giant to simplify. “We have reiterated our view that Shell’s portfolio of disparate businesses ranging from deep water oil to wind farms to gas stations to chemical plants is confusing and unmanageable,” he said. He called discussions with management, board members and other shareholders “constructive” as he cheered Shell’s decision to redomicile its headquarters to the U.K.

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