Hedge Funds Surge Into Energy Stocks as Iran Conflict Enters Seventh Week

Gate News message, April 15 — Hedge funds are making aggressive moves into energy stocks as the Iran conflict enters its seventh week, according to a report released Wednesday by data platform Hazeltree. Long positions in energy have increased more than 10% since February, with 55% of the companies tracked by Hazeltree receiving bullish bets from hedge funds. The data covers 600 asset management institutions and 16,000 global equities.

U.S.-Iran negotiations ended without progress last weekend, and the U.S. Navy has blockaded Iranian ports, preventing oil tanker operations. Energy stocks have rallied more than 22% year-to-date, driven by rising oil prices. Among asset managers tracked, 44% increased their long holdings in energy stocks by more than 10% compared to February.

Morgan Stanley data reinforces the trend, showing that as of the week ending April 10, the energy sector was the only U.S. stock sector to receive net buying from hedge funds. Funds have been adding to crude oil-related long positions.