After several false starts over the last two years, U.S. fund managers are betting that energy stocks have finally hit bottom.
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After several false starts over the last two years, U.S. fund managers are betting that energy stocks have finally hit bottom.
Firms including T. Rowe Price, Fidelity, and American Funds have been adding shares of exploration and production companies that they say have the most to gain from oil prices stabilizing. The price of oil fell from $115 (U.S.) a barrel to $27.88 between June 2014 and January of this year, yet is up more than 50 per cent since hitting its low.
The number of funds buying shares of ConocoPhillips jumped 144 per cent over the last three months compared with the previous quarter, according to data from fund tracker Morningstar. Occidental Petroleum Corp., meanwhile, had a 110-per-cent increase in new owners.
