Energy has been the worst-performing sector over the past year, returning less than 1% compared to a 34% gain by the S&P 500. However, oil prices have actually risen over the past month as tensions in the Middle East have created worries over supply disruptions.
Because alternative energy sources will have trouble meeting global demand, the need for fossil fuels will remain significant for decades to come. That may be why billionaire hedge fund investors are buying oil stocks hand over fist. In particular, they are scooping up large tranches of this stock.
This post originally appeared at 24/7 Wall St.