Is Infrareit Inc. (NYSE:HIFR) a good investment opportunity? Phill Gross and Robert Atchinson seem to think so, as their fund, Adage Capital Management, has made a huge addition to its position. Whereas the fund held 10,100 shares at the end of the first quarter, the position has been increased to a little over 3.5 million, giving it control over 8.03% of the trust’s outstanding shares, according to a recent filing with the US Securities and Exchange Commission.
Infrareit Inc. (NYSE:HIFR), a real estate investment trust (REIT), is an owner of electricity delivery infrastructure assets in Texas that it leases to Sharyland Utilities, L.P. With a market cap of $770 million, Infrareit’s stock has seen some wild swings in the beginning of 2016 and then slowed down to a crawl since the end of March.
The stock of the $1.09 billion REIT has declined by around 2.3% year-to-date. On June 3, the company announced that its board of directors had approved an annual dividend of $1.00 per share, which at current prices gives the stocks a yield of around 5.56%.
Hedge fund interest in Infrareit Inc. (NYSE:HIFR) picked up during the first quarter, with the number of long positions having increased to 22 at the end of March, from 16 recorded a quarter before. Parag Vora‘s HG Vora Capital Management held 600,000 shares of Infrareit, all of them acquired during the quarter. Israel Englander‘s Millennium Management was also invested, having reported ownership of 475,158 shares, down by 10% during the quarter.
You can access the original SEC filing by clicking here.
Ownership Summary Table
| Name | Sole Voting Power | Shared Voting Power | Sole Dispositive Power | Shared Dispositive Power | Aggregate Amount Owned Power | Percent of Class |
|---|---|---|---|---|---|---|
| Adage Capital Partners | 0 | 3,500,100 | 0 | 3,500,100 | 3,500,100 | 8.03% |
| Adage Capital Partners GP | 0 | 3,500,100 | 0 | 3,500,100 | 3,500,100 | 8.03% |
| Adage Capital Advisors | 0 | 3,500,100 | 0 | 3,500,100 | 3,500,100 | 8.03% |
| Robert Atchinson | 0 | 3,500,100 | 0 | 3,500,100 | 3,500,100 | 8.03% |
| Phillip Gross | 0 | 3,500,100 | 0 | 3,500,100 | 3,500,100 | 8.03% |
Follow Phill Gross's Adage Capital Management
Page 1 of 12 – SEC Filing
| SECURITIES AND EXCHANGE COMMISSION | |
| Washington, D.C. 20549 | |
| SCHEDULE 13G | |
| Under the Securities Exchange Act of 1934 | |
| (Amendment No. )* | |
| InfraREIT, | |
| (Name of Issuer) | |
| Common Stock, | |
| (Title of Class of Securities) | |
| 45685L100 | |
| (CUSIP Number) | |
| July 20, | |
| (Date of Event Which Requires Filing of This Statement) | |
| Check the appropriate box to designate the rule pursuant to which this Schedule is filed: | |
| ¨ | Rule 13d-1(b) |
| x | Rule 13d-1(c) |
| ¨ | Rule 13d-1(d) |
| (Page 1 of 12 Pages) | |
______________________________
*The remainder of this cover page shall
be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any
subsequent amendment containing information which would alter the disclosures provided in a prior cover page.
The information required in the remainder
of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of
1934 (“Act“) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other
provisions of the Act (however, see the Notes).
