Factset’s compiled some stats from 13F Season and gives us a sector breakdown of where hedge funds bought and sold. Energy represents far and away the place where hedge funds found value at year-end 2013 – which makes sense as it was a laggard sector and long/short equity guys are frequently driven by valuation:
On the sector-level, the top 50 hedge funds added the most exposure to the Energy sector, while Apollo Capital’s sale of LyondellBasell led to a significant decrease in exposure in the Materials sector. The funds added over half a billion dollars in exposure to each of four North American companies related to oil and gas, refining, or energy equipment and services: Whiting Petroleum, Valero Energy Corporation, Talisman Energy, and Cameron International. Of these names, Valero Energy is noteworthy for rising nearly 50% since the beginning of Q4. The most overweight sector continues to be Consumer Discretionary (+8.2 percentage points relative to the S&P 500).