Ecofin has filed its latest 13F with the SEC as of March 31, 2015 and disclosed an equity portfolio valued at some $693 million. The equity portfolio is mainly invested in Utilities (51.1%), Technology (14.6%) and Industrials (13.5%) stocks. Ecofin's last 13F filing showed that the fund raised its exposure towards tech stocks, but reduced his holdings in the industrials and consumer discretionary sector.
In this article we will look into the top three picks held at the end of March. These companies are NextEra Energy, Inc. (NEE), Pattern Energy Group Inc. (PEGI) and Williams Companies, Inc. (WMB). Among the 10 largest holdings from Ecofin's equity portfolio (which amass 57.59% of the total portfolio value), we found the top three in the next list. NextEra Energy, Inc. represents the first most valuable investment in Ecofin�s portfolio, which holds 690,561 shares, up by 17% on the quarter; the value of the stake amounts to a market value of $71.85 million. We must highlight that the stock lost about 2.1% during the first quarter of 2015, but returned almost 10% in the last 52 weeks. The stock was recently upgraded by Deutsche Bank, to a Buy rating from a Hold, with a price target of $113, providing some upside with shares currently trading today above $105. This utility company has an attractive dividend yield of 3% that we must be aware, specially in this industry. For the previous quarter, the fourth quarter of 2014, the company posted revenues of $4.66 billion compared to $3.63 billion for the fourth quarter of 2013. Along with this, earnings per share (EPS) have significantly increased in the fourth quarter of 2014 to $2.0 from $0.75 a year earlier. The good EPS growth, as well as higher profit margins achieved in the past quarter, makes me feel expectantly on the next earnings date. It is scheduled to announce its first-quarter earnings on April 29. NextEra Energy is one of the favorite airline stocks among hedge funds as 1028 filers held the stock at the end of the past year. The largest shareholder of the company was VANGUARD GROUP INC, with 24.28 million shares valued at $2.58 billion, as of the end of 2014. In second place we found Pattern Energy Group Inc. The fund held about 1.97 million shares valued at a market value of $55.72 million. With a market cap of $2.12 billion, Pattern Energy is up only by 14.84% during the quarter. The firm is an independent power company, which owns and operates power projects promising markets like the U.S., Canada and Chile. The company�s power projects generate stable cash flows and provide investors with an attractive 4.5% dividend yield. Riverstone Holdings held a stake of 21.96 million shares of the company valued at $541.59 million at the end of the year. Finally, we found Williams Companies, Inc. The fund held about 803,130 shares with a market value of $40.63 million. The $39.25 billion market cap company is up by 12.57% during the first quarter. Among the investors who have increased their positions in this stock, we can mention Dan Loeb, which upped its stake by 167% in the fourth quarter. The guru held 4 million shares, valued at $179.76 million, representing 1.6% of his portfolio. Final comment To be honest, I did not know Ecofin or listen to it before, but it has left me with a very good impression after analyzing its top three picks. Another way to invest in this industry could be gaining exposure with the Utilities Select Sector SPDR (XLU), but it has lost almost 6% in the first quarter of 2015, so following Ecofin might not be a bad idea. Disclosure: Omar Venerio holds no position in any stocks or funds mentioned This article first appeared on GuruFocus.
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