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What do hedge funds Q2 13F filings tell us?

There were 182 hedge fund managers filed form 13F with SEC as Thursday (8/7/08) for Q2 according to Bloomberg. On aggregate level, one of striking similarities among hedge funds were heavy overweight on energy sector comparing to S&P. There were no surprises that hedge funds also significantly underweighted financial and consumer sectors in the second quarter, and maintained neutral stands among other major sectors. Was the 4% overweight on energy sector a major driver of 20% sector gain (based on XLE) during the 3 month period?

If it was not the ANSWER, there was no questions that gorging of energy names by the deep pocket hedge funds were one of forces contributing to one of dramatic energy bull run until the end of second quarter. We are looking at the rear mirror of hedge fund manager actions, but today's energy related commodities wreck probably won't end soon considering many hedge funds might continue their unwinding energy positions and asset class re-allocations.


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