?Since fourth-quarter 2006, 13(f) institutions have steadily increased their energy equity-holdings in every quarter, although they are still not invested equivalent to the energy weighting of the S&P 500, reports energy investment banker Simmons & Co. International.
As of June 11, the S&P energy weighting was 15.2%—a record high.


The 13(f) institutions tracked by Simmons bought a record $33.2 billion of energy equities in first-quarter 2008 ($25.6 billion in the E&P sector alone). This total surpassed the previous record of $31 billion set in fourth-quarter 2007.


These institutions have been buying more E&P and service stocks, and in general, selling down slightly their holdings among the majors and alternative energy stocks.


13(f) institutions are investment managers with discretionary authority over combined assets in excess of $100 million. They must report their equity-holdings each quarter to the SEC, but as they have 45 days from the end of the quarter to do so, there is a lag time for data to be analyzed, Simmons explains.


As of the end of first-quarter 2008, the energy weighting for institutions was 8%, their highest level since second-quarter 2005.


In first-quarter 2008, net buyers of oil-service equities surged to 1,430 13(f) institutions, with their net purchases reaching $12 billion. Favored names included Transocean, the most heavily purchased stock, followed by Schlumberger and Nabors.


Fidelity Management and Research held the largest position in oilfield services with 3.8%, or $25.4 billion, of its $674.9-billion portfolio invested in these types of equities.


On the heels of strong E&P performance, there was a lot of movement in and out of E&P stocks.


“Despite exceedingly strong net purchasing activity during the quarter, net buyers of E&P stocks fell 39 to 1,093 institutions and net sellers increased 141 to 1,102,” the firm reports.


Apache Corp. was the most widely held E&P stock in the first quarter, by some 1,2197 institutions, followed by Devon Energy with 1,061.

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