High Dividend Yields for Billionaire Thomas Steyer’s Farallon Capital

Page 1 of 2

Since founding Farallon Capital Management in 1986, Thomas Steyer and fellow investment manager Andrew J. M. Spokes have seen their AUM grow to exceed $20 billion, not including the $8bn in private equity dollars that belong to Hellman & Friedman, another firm that Steyer is a partner of. It seems that Steyer was built for Wall Street success, after being groomed at Yale, Stanford, Morgan Stanley, and Goldman Sachs. In 2010, Steyer, alongside Warren Buffett and Bill Gates, participated in the Giving Pledge, which donates half of their fortune to charity. Let’s take a look at one of the methods which helped Steyer to build that fortune, specifically dividend investing.

Thomas-Steyer-e1351513531594

BP p.l.c. (NYSE:BP) is planted at the top of our list, giving Farallon’s 845,000 shares a dividend yield of 4.8%. The major oil company continues to scour for new oil reserves, as further limits from the Middle East and other areas prevent drilling and exploration. The Street has mixed reviews of BP, perhaps caused by negative growth in earnings, revenue, and share price, although a positive slant towards buy and hold remain prevalent. Richard Perry of $2bn Perry Capital lets both an equity and call option position comprise his top five holdings (see what else tops Perry’s holdings here).

Global investment management firm Oaktree Capital Group, LLC (NYSE:OAK) also pays Farallon a hefty dividend, amounting to 4.6%. The firm currently has an AUM of roughly $80bn and specializes in contrarian debt investments. The stock recently saw an upgrade from Bank of America/Merrill Lynch, who pushed OAK up to a buy from neutral. OAK’s Q3 earnings beat last year helped propel the stock to an 11% gain in the past twelve months; the firm is expected to announce fourth-quarter results on Valentine’s Day, so be wary if investing beforehand. Billionaire David Einhorn of Greenlight Capital devotes $75mm to OAK (check out his other financial picks here).

Next on our list is Canadian-based energy producer Encana Corp. (NYSE:ECA). Focusing primarily on natural gas in the U.S. and Canada, ECA dropped their oil assets in 2009 to give full attention to natural gas, but the depressed prices in gas have not given ECA the promise they were hoping for. The stock returned negative growth in the last year, spurred on by a number of earnings misses. ECA reports on February 14th as well, with a consensus estimate of about $0.32 per share. Famed billionaire and hedge fund manager Steven Cohen of SAC Capital Advisors recently poured into Encana, possibly hoping for a push in natural gas prices in 2013. (Click here to view his other top positions). Encana pays a dividend yield of 4.2%.

Find out which other dividend plays Steyer has in his pocket on the next page.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!