10 Best Conglomerate Stocks to Buy According to Hedge Funds

6) FTAI Infrastructure Inc. (NASDAQ:FIP)

Number of Hedge Fund Holders: 21

FTAI Infrastructure Inc. (NASDAQ:FIP) focuses on acquiring, developing, and operating assets and businesses representing infrastructure for customers in the transportation, energy, and industrial products industries in North America.

As per Wall Street, FTAI Infrastructure Inc. (NASDAQ:FIP)’s portfolio of diverse, high-quality infrastructure assets offers significant opportunities for value creation with the help of strategic monetization. Its Long Ridge power plant, the company’s power generation asset, will be an extremely valuable asset because of its access to low-cost energy and increasing electricity demand.

Long Ridge should benefit from capacity auction results which indicate a significant increase in revenue potential because of higher power demand. This business should see an increase in annual adjusted EBITDA by $16 million in 2025/2026 as a result of new capacity pricing for the 2025-26 season. Analysts remain optimistic about the value of the Long Ridge power plant, considering its potential for monetization via partnerships or sales.

Long Ridge is pioneering in blending hydrogen with natural gas, targeting to become one of the first power plants in the US capable of operating on 100% green hydrogen. This places FTAI Infrastructure Inc. (NASDAQ:FIP) as a leader in clean energy innovation. Therefore, this transition to green hydrogen should fuel overall growth.

Tourlite Capital Management, an investment management firm, released its Q4 2023 investor letter. Here is what the fund said:

“FTAI Infrastructure Inc. (NASDAQ:FIP) remains an attractive and overlooked opportunity. The priority this year will be to redeem the preferred stock, followed by the refinancing of the 10.5% holding company debt. With Jefferson Terminal steadily increasing throughput volumes from signed contracts, we anticipate the potential sale of Jefferson Terminal this year. The tax-free proceeds from this sale would go towards redeeming the preferred, marking the initial step in unlocking the value embedded in the Transtar asset, which we believe exceeds the current market cap of FIP.”