We recently compiled a list of the Billionaire George Soros’ Long-Term Stock Picks. In this article, we are going to take a look at where Enterprise Products Partners L.P. (NYSE:EPD) stands against George Soros’ long-term stock picks.
George Soros is one of the most influential figures in finance, philanthropy, and global affairs. As the founder of Soros Fund Management and the Open Society Foundations, Soros has achieved monumental success as a hedge fund manager while using his wealth to champion democratic values, human rights, and social causes worldwide. Soros was born in Hungary during World War II, and his family survived Nazi occupation by securing false identities and hiding from persecution. In 1947, Soros fled Hungary and moved to England, where he studied at the London School of Economics. After graduating in 1952, Soros worked in various merchant banks before moving to the United States.
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Soros began his career in finance in New York City, where he gained experience in arbitrage and securities trading. In 1970, he founded Soros Fund Management, which later became the Quantum Fund, one of the most successful hedge funds in history. Between 1970 and 2000, the Quantum Fund generated an average annual return of over 30%, making it one of the best-performing funds in history. In 1992, Soros became famous as the man who broke the Bank of England. He bet against the British pound, anticipating that it would be devalued due to economic pressures. His position netted him a profit of $1 billion in a single day, cementing his status as a legendary investor. As of the end of the third quarter of 2024, his net worth is estimated at $7.2 billion. The 13F portfolio of his hedge fund is worth more than $6.9 billion.
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For this article, we selected stocks by combing through the 13F portfolio of Soros Fund Management at the end of the third quarter of 2024. Only the companies that have been in the 13F portfolio of the fund consistently for the past three years were selected. These stocks are also popular among other hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Aerial view of a refinery tower surrounded by the sprawling landscape of pipelines in an oil & gas midstream facility.
Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 25
Soros Fund Management’s Stake: $5.5 million
Enterprise Products Partners L.P. (NYSE:EPD) is a midstream natural gas and crude oil pipeline company with headquarters in Houston, Texas. The following key aspects make this company a standout investment. Firstly, as per the report of the fourth quarter of 2024, the reported net income attributable to common unitholders was $1.4 billion, or $0.65 per unit on a fully diluted basis. This portrays that the company is effectively improving its earnings per unit, reflecting operational efficiency and potentially leading to increased returns for shareholders. Also, an 8% increase was observed compared to $1.3 billion, or $0.60 per unit on a fully diluted basis, for the third quarter of 2023, demonstrating positive financial health and the company’s ability to attract more capital. Secondly, the company declared a quarterly distribution of $0.54 per common unit, maintaining its commitment to returning value to unitholders. This unit repurchase program shows the company’s approach to capital management, which would further enhance unitholder value through these buybacks.
Overall EPD ranks 13th on our list of George Soros’ long-term stock picks. While we acknowledge the potential of EPD as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than EPD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
