Legacy Ridge Capital Management, LLC recently published its “Legacy Ridge Capital Partners Equity Fund I” fourth quarter 2022 investor letter, which can be downloaded here. In 2022, the fund returned 12.5% gross and 10.3% net of performance fees compared to a -18.1% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Legacy Ridge Capital highlighted stocks like Enterprise Products Partners L.P. (NYSE:EPD) in its Q4 2022 investor letter. Headquartered in Houston, Texas, Enterprise Products Partners L.P. (NYSE:EPD) is a midstream energy services provider. On February 1, 2023, Enterprise Products Partners L.P. (NYSE:EPD) stock closed at $25.68 per share. One-month return of Enterprise Products Partners L.P. (NYSE:EPD) was 5.51%, and its shares gained 7.27% of their value over the last 52 weeks. Enterprise Products Partners L.P. (NYSE:EPD) has a market capitalization of $55.869 billion.
Legacy Ridge Capital made the following comment about Enterprise Products Partners L.P. (NYSE:EPD) in its Q4 2022 investor letter:
“Enterprise Products Partners L.P. (NYSE:EPD) is still owned in the fund and remains one of our largest positions, as it has been since the partnership was founded. This has not been a great investment. Shares are down about 6% since I first wrote about it. However, we have received $8.93 per share in dividends, which is about 34% of the 2018 share price. So, with dividends included we’ve made 28% cumulatively over 5-years. Still not good, but not an impairment of capital either.
Since 2018, EPD’s dividend yield has gone from 6.5% to 8% with the annual per share payout growing from $1.72 to $1.96, +14%. The pace of dividend growth has recently increased from about 2% to 5%+. Additionally, Distributable Cash Flow per share (what could be paid to us if management wanted to) has increased 22%, from $2.73 to $3.33, while leverage has come down a little over ½ a turn. So, the balance sheet and cash flow metrics are in better shape than they were 5-years ago, and they were pretty good 5-years ago.
The competitive dominance of the asset base, industry leading low leverage, and a founding family with multiple billions of dollars invested alongside us keep it a core holding in the portfolio. We’ll continue to own this company unless the shares become meaningfully overvalued, and if it gets cheaper, we would be very comfortable owning more.”
pipeline,storage tanks and buildings of a refinery – industrial plant for fuel production
Enterprise Products Partners L.P. (NYSE:EPD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Enterprise Products Partners L.P. (NYSE:EPD) at the end of the third quarter which was 23 in the previous quarter.
We discussed Enterprise Products Partners L.P. (NYSE:EPD) in another article and shared the list of hot oil stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Most Undervalued Tech Stocks To Buy
- 12 Most Undervalued Travel Stocks To Buy
- 10 Most Undervalued Solar Stocks to Buy
Disclosure: None. This article is originally published at Insider Monkey.
