This has been a tough year and a very tough 3rd quarter for all sectors. Energy was affected as much if not worse than most of the other sectors. Here I will detail the performance of the virtual mutual fund I've set up for the Energy sector on the Marketocracy web site.
Orange line in the chart below shows how my Energy Fund has performed relative to the m100 (a collective Marketocracy fund that uses picks from the top 100 members), S&P 500, Dow Jones Index, and Nasdaq.
Below is this fund's ranking:
As you can see this fund has done very will in the 1st and 2nd quarters of 2008, but as the commodities (and energy in particular) crashed by the middle of the summer, fund's performance has turned dismal in the 3rd quarter. I don't expect any kind of a significant upward movement in this sector until December in the earliest, but most likely towards the spring. The colder the winter will be and the better 4th quarter economic indicators will be, the more likely energy sector will start rising back up.
Here is a list of all the stocks currently in the fund and how they've performed up to this point:
I have not changed the picks since the fund's inception, so the turnover is negligible. I expect to add to my positions in several of these stocks since I still have $186K of Cash in this fund. Below are brief profiles of these stocks. I intend to post more details and expectations for this fund's holdings as well as for my other funds.
NuStar Energy (NS) - Based in San Antonio, Texas, NuStar Energy LP is a master limited partnership that was spun off from refiner Valero Energy. NuStar holds most of Valero Energy's pipelines, terminals, and storage facilities. The 2005 acquisition of the Kaneb companies more than doubled NuStar's asset base to 9,300-plus miles of crude-oil and refined-product pipelines, 86 terminal facilities, and four crude-oil storage facilities. (Source: Morningstar)
Buckeye Partners (BPL) - Owns and operates refined petroleum pipelines and storage terminals in the United States. Most of the company's assets are found in the Northeast and Midwest, though it also operates terminals and some smaller pipelines in the Southeast and West. Buckeye's pipelines transport a variety of refined petroleum products connecting refineries, storage facilities, other companies' pipelines, and airports. (Source: Morningstar)
Boardwalk Pipeline Partners (BWP) - Was formed in August 2005 by its parent, Loews Corporation, to acquire and develop natural-gas pipelines and storage facilities. The partnership owns two interstate natural-gas pipeline systems, which consist of 13,470 miles of pipe spanning from Texas to Ohio, and 11 underground natural-gas storage facilities. Aggressive expansion plans will increase total pipeline and storage capacity dramatically during the next several years. (Source: Morningstar)
Energy Transfer Partners (ETP) - A master limited partnership primarily engaged in natural-gas transportation and storage. The partnership operates more than 12,000 miles of natural-gas gathering and intrastate transportation pipelines in Texas and Louisiana and the 2,500-mile Transwestern interstate pipeline. Also, Energy Transfer Partners is the third-largest retail marketer of propane in the U.S., serving more than a million customers in 41 states. (Source: Morningstar)
Unit Corporation (UNT) - Unit is engaged in the contract drilling of oil and natural-gas wells. The company also develops, acquires, and produces oil and natural-gas properties and markets natural gas. Unit operates primarily in the Texas Gulf coast and Rocky Mountain regions, as well as in the Anadarko and Arkoma Basins, which cover portions of Oklahoma, Texas, Kansas, and Arkansas. The company owns and operates approximately 75 drilling rigs in these regions. Unit is based in Tulsa, Oklahoma. (Source: Morningstar)
Ensco International (ESV) - Owns one of the newest jack-up fleets in the contract drilling industry, which drills for oil and natural gas globally. The firm has been acquiring jack-ups since the early 1990s and has recently expanded its 46-jack-up fleet with its first semisubmersible. It has several additional semisubmersibles under construction. (Source: Morningstar)
Buckeye GP Holdings (BGH) - Manages a network of refined oil products pipelines and terminals through its subsidiary, Buckeye Partners. Most of the company's assets are found in the Northeast and Midwest, though it also operates terminals and some smaller pipelines in the Southeast and West. Buckeye's pipelines transport a variety of refined petroleum products connecting refineries, storage facilities, other companies' pipelines, and airports. (Source: Morningstar)
Energy Transfer Equity (ETE) - Owns the general partner interests, incentive distribution rights, and about 46% of the outstanding limited partner interests of Energy Transfer Partners. ETP is a master limited partnership primarily engaged in natural-gas transportation and storage and also is the third-largest retail marketer of propane in the U.S., serving more than a million customers in 41 states. (Source: Morningstar)
Chesapeake Energy (CHK) - An independent oil and natural-gas producer. CEO Aubrey McClendon cofounded Chesapeake in 1989 and took it public in 1993. The firm's proved reserves of 11 trillion cubic feet of natural-gas equivalent are located primarily in the Mid-Continent and Appalachian basin. Chesapeake also owns natural-gas gathering and processing assets and several drilling rigs. (Source: Morningstar)
Southern Union (SUG) - Southern Union operates an array of regulated and unregulated assets divided into the transportation and storage, gathering and processing, and distribution segments. The transportation and storage assets, comprising one of the nation's largest LNG terminals and a pipeline network stretching from Texas up through the Midwest and across to south Florida, generate the lion's share of cash flows. (Source: Morningstar)
Cal Dive International (DVR) - Cal Dive International, a marine contractor company, provides underwater services to offshore natural gas and oil firms. These services include manned diving, pipe lay and pipe burial services. It also constructs, inspects, maintains, repairs and decommissions offshore pipeline infrastructure in the Gulf of Mexico, Middle East, Southeast Asia, and Australia. Helix Energy Solutions Group is its parent company. (Source: Morningstar)
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