This way, instead of blindly following a hedge fund manager or a mega investor, there is a chance to know more in-depth reasons why something might be a buy or a sell, which is especially important when considering exiting a position. That is why today’s hedge fund buying activity in the energy sector, particularly for oil, is important to keep in mind not by itself but by connecting this buying preference to the price action in other markets as a whole.
To keep track of the overall sector, apart from oil prices, investors can look at the broader Energy Select Sector SPDR Fund (NYSEARCA: XLE); this way, they can have a gauge of oil stocks and what the sentiment shifts might be. To follow oil to the letter, that’s where the United States Oil Fund LP (NYSEARCA: USO) also comes into play. However, for those looking for a specific upside in the value chain, names like Occidental Petroleum Co. (NYSE: OXY) and Hess Co. (NYSE: HES) are ones to think about.
