Here’s Why Miller Howard Increased its Stake in Sempra (SRE)

Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.5% (yield) was recorded by the fund for the third quarter of 2021, compared to the 1.5% for the S&P 500 for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Miller Howard Investments, in its Q3 2021 investor letter, mentioned Sempra (NYSE: SRE) and discussed its stance on the firm. Sempra is a San Diego, California-based energy infrastructure company with a $41.7 billion market capitalization. SRE delivered a 2.65% return since the beginning of the year, while its 12-month returns are up by 3.48%. The stock closed at $130.79 per share on December 29, 2021.

Here is what Miller Howard Investments has to say about Sempra  in its Q3 2021 investor letter:

“In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. We increased our position in Sempra Energy (SRE) on a higher capital plan at its Texas utility and progress on its infrastructure transactions.”

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Based on our calculations, Sempra (NYSE: SRE) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SRE was in 23 hedge fund portfolios at the end of the third quarter of 2021, compared to 28 funds in the previous quarter. Sempra (NYSE: SRE) delivered a 5.80% return in the past 3 months.

In July 2021, we also shared another hedge fund’s views on SRE in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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