Fairholme Capital Management’s Largest Position: Enterprise Products Partners L.P. (EPD)

Fairholme Capital Management, an investment management company, released its “The Fairholme Focused Income Fund” half-year 2022 investor letter. A copy of the same can be downloaded here. For the six months ended May 31, 2022, the fund outperformed the Bloomberg U.S. Aggregate Bond Index by 19.18% points and returned 10.03%, and over the last fiscal year, the fund outperformed the Bloomberg Bond Index by 13.57 % points. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Fairholme Capital Management discussed stocks like Enterprise Products Partners L.P. (NYSE:EPD) in the second quarter investor letter. Headquartered in Houston, Texas, Enterprise Products Partners L.P. (NYSE:EPD) is a midstream energy services provider. On September 20, 2022, Enterprise Products Partners L.P. (NYSE:EPD) stock closed at $25.81 per share. One-month return of Enterprise Products Partners L.P. (NYSE:EPD) was -4.23% and its shares gained 19.93% of their value over the last 52 weeks. Enterprise Products Partners L.P. (NYSE:EPD) has a market capitalization of $56.246 billion.

Here is what Fairholme Capital Management specifically said about Enterprise Products Partners L.P. (NYSE:EPD) in its Q2 2022 investor letter:

“Enterprise Products Partners L.P. (NYSE:EPD) is the largest position in the Fund. Enterprise provides processing and transportation services to producers and consumers of natural gas, natural gas liquids, and oil. These hydrocarbons are critical for modern life and have few, if any, ready substitutes. Commodity prices do not greatly affect the company’s toll road fees. Enterprise is priced at less than nine times distributable cash flows and pays a 7.5% cash distribution.”

Pixabay/Public Domain

Enterprise Products Partners L.P. (NYSE:EPD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Enterprise Products Partners L.P. (NYSE:EPD) at the end of the second quarter which was 19 in the previous quarter.

We discussed Enterprise Products Partners L.P. (NYSE:EPD) in another article and shared the list of oil stocks to invest in. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.