Buffett Makes Big Bet On American Oil As Hedge Funds Liquidate Positions

As we first noted on Monday in "Hedge Funds Liquidate Oil Positions At A Near-Record Pace Amid Extreme Volatility", and as Bloomberg writes today, "fund managers have shown signs of being cautious when it comes to energy stocks, the only major industry group in the S&P 500 with a positive return so far this year" and certainly today's best performing sector.

But that caution appears to be misplaced yet again (no surprise considering the "smart money" has been dead wrong about energy for the past two years), given the tectonic shift in the petroleum…