Billionaire Lemann Bets Heavily On Canada, Energy, Railways

Enbridge Inc. (USA) (NYSE:ENB) is another energy favorite of 3G Capital Partners, with the fund adding 500,000 shares to its existing 1 million shares during the third quarter. The fund held $66.2 million of this stock at the end of September, 2016 making it the 5^th largest 13F holding. Like other energy stocks, Enbridge Inc. (USA) (NYSE:ENB) has also given a handsome return of 21% over the last one year. Analysts have an overwhelmingly favourable view of this company with 7 analysts out of the 9 covering this stock rating it as a buy and none rating it as a sell. The company recently announced that it would merge with Spectra Energy Corporation (NYSE:SE) to form the largest energy infrastructure company in USA with an enterprise value of around $127 billion. By the end of the third quarter, 21 funds from our database held shares worth $286.4 million in this stock,  compared to $191.5 million held by 15 funds during the second quarter.

Encana Corp (USA) (NYSE:ECA) is a Canadian based oil and gas company in which 3G Capital owned shares worth $62.8 million at the end of the third quarter. The fund bought a new position in this company, good for around 5% of the fund’s 13F portfolio value as of September 30th. The stock has been on a tear over the last 3 months. Encana Corp (USA) (NYSE:ECA) has been upgraded both by Barclays and RBC Capital. The average analyst rating is “overweight” with a mean target price of $17.3 per share. The company reported good quarterly results after decreasing its operating costs by 30% over the last one year and slashing its debt by $2 billion over the last one quarter. As per our records, the number of funds having Encana Corp (USA) (NYSE:ECA) in their portfolio increased by 11 to 37 in the third quarter. They held almost 17% of the company’s float at the end of quarter three.

Union Pacific Corporation (NYSE:UNP) is another railroad company in which 3G Capital Partners bought a fresh position during the third quarter. The fund now holds $11.68 million of this stock accounting for 0.9% of the fund’s total 13F holdings as of the end of September. Union Pacific Corporation (NYSE:UNP) owns rail networks across 20 states in the western part of USA and connects with the railroad systems in Canada and Mexico. The company reported a 90 basis points increase in operating margins to 37.9% in the third quarter while the net margin remained more or less constant at 21.8%. CEO Lance Fritz said that he was seeing green shoots in sectors such as grain and energy, though challenges continue from the broader economy. The new Republican administration, with its focus on infrastructure spending, could be a positive for the company. The number of funds in our system positive on the stock increased to 62 in Q3 from 55 in the second quarter. However, the value of their total holdings declined to $2.5 billion from $2.55 billion quarter over quarter.

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