Paul Singer isn't tiptoeing into the energy sector, he's charging in at full throttle.

In the first quarter of 2025, Elliott Investment Management hiked its energy sector exposure from 23.84% to a commanding 37.64%, making it the firm's largest allocation.

Phillips 66, Suncor: Singer’s Energy Bets

Leading the charge? A nearly $2 billion bet on Phillips 66 (NYSE:PSX) and Suncor Energy Inc. (NYSE:SU), now two of the fund's top three holdings.

Singer made an especially bold move with Phillips 66. Elliott upped its stake in the oil refiner by nearly 2,000%, buying 14.95 million new shares and bringing the total holding to 15.73 million, valued at roughly $1.94 billion. Phillips 66 now accounts for 12.81% of Elliott's $15.2 billion 13F portfolio, vaulting from a fringe position to the No. 3 spot.

Suncor, too, remains a core conviction, with a $2.04 billion stake representing 13.46% of the portfolio. That holding was unchanged from the previous quarter, but its high ranking underscores Singer's sustained confidence in traditional energy.

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From Broad Market To Tactical Plays

This surge in energy positions comes as Elliott simultaneously trimmed or exited exposure to broader market ETFs and sectors. Notably, the firm slashed its SPDR S&P 500 ETF (NYSE:SPY) put position by over 25% and cut bets against Energy Select Sector SPDR Fund (NYSE:XLE) and VanEck Oil Services ETF (NYSE:OIH), signaling a tactical shift toward direct plays like Phillips 66 and Suncor.

It's a classic Singer move: lean in when others hedge. While the broader market debates peak oil demand and ESG pressures, Elliott is doubling down on old-school energy — and doing it with size. Whether this is a contrarian masterstroke or a risky overexposure remains to be seen.

But one thing's clear — when Paul Singer turns up the heat, he doesn't wait for consensus.

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