In this article, we discuss 10 companies to consider in the portfolio of Mark Green. If you want to read about some more companies in the portfolio of the lawmaker, go directly to Mark Green Stock Portfolio: 5 Companies To Consider.
Mark Green is a physician, former armed services member, and a politician who has been serving on the United States House of Representatives from the 7th congressional district of Tennessee since 2019. Green is a member of the Republican Party and one of the most active stock traders in Congress. Green serves on important House Committees like the Committee on Foreign Affairs and the Committee on Armed Services. He has also sponsored legislation related to the energy sector, including placing sanctions on Russian energy exports.
The interest that Green shows in the energy sector is important because as inflation rises and energy prices surge, the lawmaker has been buying trading energy-related stocks on Wall Street. Per the latest disclosures, Green engaged in close to 600 stock trades in 2021, worth over $87 million. Over $44 million worth of these trades involved the buying of stocks, while nearly $43 million involved selling. The lawmaker last issued a Periodic Transaction Report mandated under the law on March 3, just before the Fed met on raising interest rates.
Some of the top companies to consider in the portfolio of Mark Green include USA Compression Partners, LP (NYSE:USAC), PBF Logistics LP (NYSE:PBFX), and Plains All American Pipeline, L.P. (NASDAQ:PAA), among others discussed in detail below.
Source: pexels
Our Methodology
The companies listed below were picked from the Periodic Transaction Report(s) that Mark Green is obliged to file. It is important to clarify that the companies listed below were picked from the public record of investments Green and his family have made in the past few months. The purchases may not have been made by Green but only disclosed on behalf of his family.
Data from around 900+ elite hedge funds tracked by Insider Monkey in Q4 2021 was used to identify the number of hedge funds that hold stakes in each firm.
Mark Green Stock Portfolio: Companies To Consider
10. Energy Transfer LP (NYSE:ET)
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) provides energy services. Major hedge funds hold large stakes in the company. Among the hedge funds being tracked by Insider Monkey, Washington-based firm Appaloosa Management LP is a leading shareholder in Energy Transfer LP (NYSE:ET), with 12.3 million shares worth more than $101 million.
According to a security filing dated March 8, Mark Green purchased shares of Energy Transfer LP (NYSE:ET) worth somewhere between $100,000 and $250,000 on March 3. The trade was disclosed almost a week after it was made.
Just like USA Compression Partners, LP (NYSE:USAC), PBF Logistics LP (NYSE:PBFX), and Plains All American Pipeline, L.P. (NASDAQ:PAA), Energy Transfer LP (NYSE:ET) is one of the stocks that elite investors are flocking to.
In its Q1 2021 investor letter, Miller/Howard Investments highlighted a few stocks and Energy Transfer LP (NYSE:ET) was one of them. Here is what the fund said:
“Another upweight was Energy Transfer LP (NYSE:ET), which was selling at a discount on EV/ EBITDA compared with the portfolio and had an attractive +20% FCF yield. Further, Energy Transfer LP (NYSE:ET)’s ample FCF should exceed the current distribution even if the Dakota Access Pipeline were to be shut down.”
9. Antero Midstream Corporation (NYSE:AM)
Number of Hedge Fund Holders: 16
Antero Midstream Corporation (NYSE:AM) owns and operates midstream energy infrastructure. A Periodic Transaction Report from February 14 shows that Green purchased Antero Midstream Corporation (NYSE:AM) stock worth $100,000-$250,000 on February 7 and disclosed the transaction in this regard a week later.
The hedge fund sentiment around Antero Midstream Corporation (NYSE:AM) stock is positive as well. At the end of the fourth quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $93 million in Antero Midstream Corporation (NYSE:AM), up from 14 in the preceding quarter worth $87 million.
In its Q4 2020 investor letter, Bonhoeffer Capital Management, an asset management firm, highlighted a few stocks and Antero Midstream Corporation (NYSE:AM) was one of them. Here is what the fund said:
“Public LBOs (32% of Portfolio; Quarterly Average Performance +25%)
This includes our broadcast
TV franchises, leasing and roll-on/roll-off (RORO) shipping, and our natural gas pipeline firm. One trend in these levered firms is the increasing spread between bond yields and the firms’ free cash flow yield.
An example is Antero Midstream Corporation (NYSE:AM), whose FCF yield was 15% as of December 31, 2020, with a debt yield of 6% with the bond/equity FCF spread of 9%. This is a large spread given that Antero Midstream Corporation (NYSE:AM) has completed its backbone infrastructure and gathering investment and capital expenditures should be small going forward. With natural gas prices rebounding, Antero Midstream Corporation (NYSE:AM) cash flows become more secured as Antero Midstream Corporation (NYSE:AM) has more cash flow cushion in making payments to Antero Midstream. The recovery in natural gas prices is expected to continue as the economy opens up and low oil prices have shut down Permian oil wells that were generating almost-free associated natural gas. Antero Midstream’s FCF yield of 15% is also higher than similarly secured Antero Midstream Corporation (NYSE:AM) subordinated debt with a yield of 7.8%.”
8. EnLink Midstream, LLC (NYSE:ENLC)
Number of Hedge Fund Holders: 8
EnLink Midstream, LLC (NYSE:ENLC) provides midstream energy services. Elite hedge funds are bullish on the stock. Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in EnLink Midstream, LLC (NYSE:ENLC), with 1.4 million shares worth more than $10 million.
Mandatory filings by Mark Green dated early March show that the lawmaker sold EnLink Midstream, LLC (NYSE:ENLC) stock worth somewhere between $500,000 and $1 million on March 2. The transaction in this regard was disclosed almost a week after it was made.
7. MPLX LP (NYSE:MPLX)
Number of Hedge Fund Holders: 8
MPLX LP (NYSE:MPLX) is an Ohio-based energy firm. Filings from November 2021 show that Green bought MPLX LP (NYSE:MPLX) stock worth somewhere between $500,000 and $1 million on November 8. The transactions in this regard were disclosed on November 18, 10 days after they were made.
MPLX LP (NYSE:MPLX) remains a notable hedge fund pick in the energy sector. At the end of the fourth quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $50 million in MPLX LP (NYSE:MPLX), the same as in the preceding quarter worth $90 million.
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and MPLX LP (NYSE:MPLX) was one of them. Here is what the fund said:
“Lastly, we added MPLX LP (NYSE:MPLX) in the with-MLP version. MPLX LP (NYSE:MPLX) pays a high dividend and is cheap relative to similar pipeline companies… We increased our weight in MPLX LP (NYSE:MPLX) which provides exposure to Permian volumes and northeast natural gas volumes. In addition, the company’s FCF yield was above the portfolio’s FCF yield.”
6. NGL Energy Partners LP (NYSE:NGL)
Number of Hedge Fund Holders: 3
NGL Energy Partners LP (NYSE:NGL) provides logistics for the energy sector. At the end of the fourth quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $7.4 million in NGL Energy Partners LP (NYSE:NGL), compared to 4 in the preceding quarter worth $653,000.
Securities filings from Mark Green dated early January reveal that the lawmaker sold NGL Energy Partners LP (NYSE:NGL) stock worth somewhere between $15,000 and $50,000 on December 12 last year, disclosing the transaction in this regard the following week.
Along with USA Compression Partners, LP (NYSE:USAC), PBF Logistics LP (NYSE:PBFX), and Plains All American Pipeline, L.P. (NASDAQ:PAA), NGL Energy Partners LP (NYSE:NGL) is one of the stocks that hedge funds have their eye on amid rising inflation.
In its Q4 2020 investor letter, Miller Value Partners, an asset management firm, highlighted a few companies and NGL Energy Partners LP (NYSE:NGL) was one of them. Here is what the fund said:
“NGL Energy Partners LP (NYSE:NGL) dropped 37.0% over the period, though its small weight in the fund meant only 12 basis points (bps) of value detraction. NGL Energy Partners LP (NYSE:NGL) reported EBITDA of $138M, missing consensus of $142 by 3% driven by lower than expected crude and water volumes. Distributable cash flow of $73M beat analyst estimates of $69M and provided 5.5x coverage on the reduced quarterly dividend of $0.10/share (13.6% annualized yield). Since July 1st, NGL has retired $75M of unsecured notes, bringing Year-to-Date (YTD) repurchases to $125M. Management remains fully committed to deleveraging and noted a Joint Venture (JV) for the Water business is likely by year-end. NGL Energy Partners LP (NYSE:NGL) exited the quarter with $3.3Bn in total debt, $122M of liquidity, leverage of 5.3x, and remains in full compliance with all debt covenants.”
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Disclosure. None. Mark Green Stock Portfolio: 10 Companies To Consider is originally published on Insider Monkey.
