Louis Navellier Increases Exposure to These Five Utilities Stocks

Louis G. Navellier, Chairman and Founder of Navellier & Associates Inc., started managing private accounts for high-net-worth individuals in 1987, several years after discovering a market-beating formula as part of a university assignment to create a model that would mimic the S&P 500 Index. Nevada-based Navellier & Associates manages a variety of portfolios by applying a quantitative investment process.

Mr. Navallier’s hedge fund firm predominantly focuses on growth equity investments, as he believes stock selection in growth stocks can deliver far superior returns to passive index investing. In fact, The New York Times called Louis Navellier “an icon among growth stock investors,” so retail investors should definitely examine his quarterly moves and market commentaries (why not attempt to figure out his market-beating formula by examining 13F filings?) Apart from successfully managing his hedge fund vehicle for more than three decades, Mr. Navellier is also famous for authoring the bestseller titled “The Little Book That Makes You Rich.” As Navellier & Associates recently submitted its 13F filing for the June quarter with the SEC, Insider Monkey decided to compile a list of five utilities stocks the Nevada-based asset manager favored during the second quarter of 2016. Aside from increasing exposure to individual utilities companies, the asset manager also initiated a new position in the iShares U.S. Utilities ETF that tracks the investment results of an index composed of U.S. equities in the utilities sector.

At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details).

#5. WEC Energy Group Inc. (NYSE:WEC)

– Shares Owned by Navellier & Associates (as of June 30): 22,455

– Value of Navellier & Associates’ Holding (as of June 30): $1.47 Million

Navellier & Associates upped its position in WEC Energy Group Inc. (NYSE:WEC) by 80% during the second quarter of 2016 to 22,455 shares. The position was worth $1.47 million at the end of the quarter. The diversified holding company with natural gas and electric utility operations and a 60% equity ownership interest in a for-profit electric transmission company has seen its market cap increase by 21% since the beginning of the year. WEC Energy Group, which services around 1.6 million electricity customers and 2.8 million natural gas customers, posted second-quarter revenue of $1.6 billion, up from $990 million reported for the second quarter of 2015. The increase was primarily driven by the $5.7 billion-acquisition of fellow power and gas company Integrys in late June of 2015. The energy company’s boardroom recently approved a quarterly cash dividend of $0.495 per share, which yields 3.17% annually. LMR Partners, founded by Ben Levine, Andrew Manuel and Stefan Renold, owns 6,582 shares of WEC Energy Group Inc. (NYSE:WEC) as of June 30.

#4. Ormat Technologies Inc. (NYSE:ORA)

– Shares Owned by Navellier & Associates (as of June 30): 34,031

– Value of Navellier & Associates’ Holding (as of June 30): $1.49 Million

The Nevada-based hedge fund firm added 19,315 shares of Ormat Technologies Inc. (NYSE:ORA) to its existing position in the company during the three-month period ending June 30, finishing the quarter with 34,031 shares. The increased position was valued at $1.49 million at the end of June and accounted for a mere 0.2% of the hedge fund’s entire portfolio. The shares of the Nevada-based company engaged in the geothermal and recovered energy power business have advanced 31% since the start of the year. In July, the company closed its previously-announced acquisition of Geothermie Biullante SA, which owns and operates a geothermal power plant located in Guadeloupe Island, a French territory in the Caribbean. Ormat Technologies recorded total revenues of $159.86 million for the three months that ended June 30, up from $140.49 million posted a year ago. Bernard Lambilliotte’s Ecofin Ltd reported owning nearly 31,000 shares of Ormat Technologies Inc. (NYSE:ORA) in its 13F filing for the June quarter.

#3. NiSource Inc. (NYSE:NI)

– Shares Owned by Navellier & Associates (as of June 30): 159,304

– Value of Navellier & Associates’ Holding (as of June 30): $4.23 Million

The asset manager overseen by well-known money manager Louis G. Navellier increased its exposure to NiSource Inc. (NYSE:NI) by 46% during the April-to-June period to 159,304 shares. The reshuffled position was worth $4.23 million on June 30 and made up 0.6% of the investment firm’s overall portfolio. The energy holding company that operates fully-regulated natural gas and electric utility companies serving customers in seven states has seen the value of its shares gain 27% since the start of the year. NiSource’s consolidated net revenues, which represent gross revenues less cost of sales, were $662.7 million for the second quarter, up $28.1 million from the same period of the prior year. The increase partially reflects the company’s increased capital spend on electric transmission projects and environmental investments. NiSource’s net revenues also increased by $6.1 million due to the impact of colder weather, which boosted net revenues from the gas distribution operations segment. Israel Englander’s Millennium Management was the owner of 4.48 million shares of NiSource Inc. (NYSE:NI) at the end of the first quarter.

#2. Consolidated Edison Inc. (NYSE:ED)

– Shares Owned by Navellier & Associates (as of June 30): 136,064

– Value of Navellier & Associates’ Holding (as of June 30): $10.95 Million

Navellier & Associates acquired a new stake of 136,064 shares of Consolidated Edison Inc. (NYSE:ED) during the second quarter, which was valued at $10.95 million on June 30. The new position accounted for 1.6% of the hedge fund’s entire portfolio. Consolidated Edison provides electrics service and gas services in New York City and Westchester County through its CECONY subsidiary, as well as serves consumers in southeastern New York and adjacent areas of New Jersey and eastern Pennsylvania through its Orange and Rockland Utilities subsidiary. The energy-delivery company has increased annual dividend payments to shareholders for 40 consecutive years and will likely keep increasing further, as the company’s current payout ratio stands at approximately 68%. Consolidated Edison’s Board of Directors recently approved a quarterly dividend of $0.67 per share, which equates to an annual dividend yield of 3.45%. Con Edison shares are up 20% since the beginning of the year. Ray Carroll’s Breton Hill Capital upped its stake in Consolidated Edison Inc. (NYSE:ED) by 62% during the June quarter to 11,538 shares.

#1. SCANA Corporation (NYSE:SCG)

– Shares Owned by Navellier & Associates (as of June 30): 155,789

– Value of Navellier & Associates’ Holding (as of June 30): $11.79 Million

The growth-oriented hedge fund manager owned 155,780 shares of SCANA Corporation (NYSE:SCG) at the end of the second quarter, 149,114 shares more than at the end of the first quarter. The updated stake was valued at $11.79 million on June 30, constituting 1.8% of the asset manager’s overall portfolio. The energy-based holding company engaged in regulated electric and natural gas utility operations in South Carolina, North Carolina and Georgia has seen the value of its stock spike by 20% since January. In mid-June, analysts at Morgan Stanley downgraded SCANA to ‘Underweight’ from ‘Equal Weight’, citing weakening financial outlook as the company faces the possibility of additional delays in the nuclear construction side of its business. Morgan Stanley issued a price target of $67 on SCANA shares. Cliff Asness’ AQR Capital Management had around 822,000 shares of SCANA Corporation (NYSE:SCG) at the end of March.

Disclosure: None