Five MLPs Hedge Funds Love

#3 Williams Partners LP (NYSE:WPZ)

– Number of Hedge Fund Holders (as of September 30): 19
– Total Value of Hedge Fund Holdings (as of September 30): $170.02 million
– Hedge Fund Holdings as Percent of Float (as of September 30): 0.90%

Because of new pipelines and processing plants coming online, Williams Partners LP (NYSE:WPZ), enjoyed an adjusted EBITDA increase of 21% year-over-year to $1.1 billion in the third quarter. Distributable cash flow more than doubled to $754 million for the quarter, from $367 million posted a year earlier. Because of the increase in cash flow, the company has a cash distribution coverage ratio of 1.04x, more than enough to cover the dividend payouts. However, given the further fall in natural gas prices since September 30, this may not be the case going forward. John Orrico‘s Water Island Capital was among the 19 elite funds that were long the MLP, according to the latest round of 13F filings.

#2 Enterprise Products Partners L.P. (NYSE:EPD)

– Number of Hedge Fund Holders (as of September 30): 21
– Total Value of Hedge Fund Holdings (as of September 30): $210.07 million
– Hedge Fund Holdings as Percent of Float (as of September 30): 0.40%

Given Enterprise Products Partners L.P. (NYSE:EPD)’s good management, decent dividend distribution coverage, and solid balance sheet, it’s not surprising that all 14 analysts covering the stock have ‘Buy’ ratings. Analysts at Deutsche Bank have a $30 price target, while Argus has set a $38 target. The buy-side is also becoming a little bit more optimistic, with the number of funds long the stock increasing by one quarter-over-quarter to 21 at the end of September. Shares of the company yield 6.57%, indicating the market’s confidence in the dividend.