Hedge Funds Sell Off Winning Energy Stocks to Buy Soaring Oil

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Energy Stocks Noticias

Bloomberg,Hedge Funds,Oil Prices

(Bloomberg) -- With energy stocks trading near all-time highs and oil climbing as well, hedge funds think they’ve found a trade to capitalize: Sell the...

-- With energy stocks trading near all-time highs and oil climbing as well, hedge funds think they’ve found a trade to capitalize: Sell the shares and pour the profits into buying more crude.Hedge funds have been selling US energy stocks for three straight weeks, according to prime brokerage data from Goldman Sachs Group Inc. The net allocation to energy also is well below historical levels, with energy now making up just 2.2% of overall US net exposure on Goldman’s prime brokerage book.

“The historical dynamic with energy stocks is a like a boom-bust: oil runs, these stocks run and then, there’s a supply response causing prices to fall and these stocks drop,” said Walter Todd, chief investment officer at Greenwood Capital Associates, who owns stocks like Exxon Mobil Corp., ConocoPhillips and EOG Resources Inc.

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