The most valuable position Peconic Partners held at the end of December 2018 was in an American multinational infrastructure construction and engineering company, MasTec, Inc. (NYSE:MTZ). The fund held 4.38 million MasTec’s shares that were valued $177.76 million, accounting for 43.5% of its equity portfolio. The company has a market cap of $3.55 billion, and it is trading at a price-to-earnings ratio of 14.30. Since the beginning of the year MasTec’s shares have gained 14.11%, and on March 7th had a closing price of $46.65.
Peconic Partners’ $111.08 million worth a position in Quanta Services Inc (NYSE:PWR) accounted for 27.18% of the fund’s portfolio. This second largest position in its portfolio was based on 3.69 million shares outstanding. Quanta Services is a US Fortune 300 corporation that offers a wide variety of professional infrastructure solutions for telecommunication, oil & gas, and electric power industries. It has a market cap of $4.96 billion while trading a price-to-earnings ratio of 18.36. Year-to-date, its stock gained 16.95%, having a closing price of $34.99 on March 7th.
During the fourth quarter of 2018, Peconic Partners initiated nine long positions, among which the largest one was in one North America’s biggest energy infrastructure company, Kinder Morgan Inc (NYSE:KMI). The fund purchased 1.45 million Kinder Morgan’s shares, establishing in that manner a position that was worth about $22.28 million. Kinder Morgan, which has a market cap of $45.27 billion, runs (or at least owns an interest) in 152 terminals and around 85,000 miles of pipelines. Over the last 12 months, the company’s stock gained 24.61%, and on March 6th it had a closing price of $20. It is trading at a price-to-earnings ratio of 29.98. Recently, the company reported that its board of directors allowed a cash dividend of $0.20 per share for the fourth quarter of 2018. Kinder Morgan also disclosed net income available to common shareholders of $483 million, compared to a net loss available to common shareholders of $1,045 million in the corresponding quarter of 2017. Its revenues amounted to $3.78 billion for the three months ended December 31, 2018, versus $3.63 billion in the same period of 2017. Earnings per common share reached $0.66 in 2018 from $0.01 in 2017. On February 5th, 2019, Evercore ISI placed ‘Outperform’ rating on the stock, while about two weeks earlier, Argus restated its ‘Buy’ rating with a price target of $23.00 on it. The second biggest new position the fund obtained in the same quarter was in Tesla Inc (NASDAQ:TSLA), whose 44,000 shares with a value of $14.64 million the fund purchased.
Out of 16 long positions Peconic Partners decided to dump in Q4 2018, the biggest ones were in Alphabet Inc Class A (NASDAQ:GOOGL), VMware, Inc. (NYSE:VMW), and Flexion Therapeutics Inc (NASDAQ:FLXN). The fund said goodbye to 9,000 Alphabet’s shares with a value of $10.86 million, 49,138 VMware’s shares that were worth $7.67 million, and 222,965 Flexion Therapeutics’ shares, which carried a value of $4.17 million.
Disclosure: None
This article was originally published at Insider Monkey.
