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We Called The Bottom On Oil - Now The IEA Is Jumping On Board

Summary

In February of this year, there weren't a lot of people interested in owning oil or oil related securities.

We found three of the best investors in the world that were all saying to get long oil and we wrote about it at exactly the right time.

Now even the IEA, which has been very, bearish sees that the oil market is coming into balance and that oil prices will keep heading higher.

Note: Our goal is to be Seeking Alpha's top source of investment ideas from the world's hedge fund stars of today. Click the follow button at the top of this article so that we can keep these ideas from the best in the business flowing to you.

On February 19 we wrote about how the time to invest in oil (NYSEARCA:USO) had arrived. With the benefit of hindsight that article was very timely.

Nasdaq.com

The price of oil on February 19 closed at $29.59. At the close of business on Friday, May 13 it had increased by 56% to $46.21.

We aren't thumping our chest on picking the bottom for oil. That was luck. We had no idea exactly when oil was going to bottom. What we did think was that at that point it was a good time to be getting exposure to oil.

Our Bullish View On Oil Came From Three Star Investors

At Hedge Fund Insiders we don't spend our time trying to dig up our own investment ideas. We spend our time scouring the portfolios of the world's best professional managers so that we can steal their very best ideas.

We don't think that it is a giant stretch to suggest the best risk-adjusted investment ideas can be found in the portfolios of the best investors. In fact we think it would be ridiculous not to believe that.

We are always interested in what these investors with long term track records of outperformance are doing with their money. When a bunch of them start doing the exactly the same thing at exactly the same time we really get interested.

In February of this year we noticed that three great investors were saying similar things about oil.

Bruce Berkowitz - "It's Déjà Vu All Over Again"

A decade ago Bruce Berkowitz of the Fairholme Fund became very bullish on oil. As a concentrated investor he sought to profit from that belief with a large position in Canadian Natural Resources (NYSE:CNQ).

As oil prices rose in 2008 Berkowitz exited that position as oil soared. Now as oil has crashed re-established his position in Canadian Natural over the course of 2015.

Earlier this year we noticed these words in the Fairholme Fund's 2015 annual report:

Supply increases have led to an oil and gas price collapse. Energy...


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