Louis G. Navellier, Chairman and Founder of Navellier & Associates Inc., started managing private accounts for high-net-worth individuals in 1987, several years after discovering a market-beating formula as part of a university assignment to create a model that would mimic the S&P 500 Index. Nevada-based Navellier & Associates manages a variety of portfolios by applying a quantitative investment process.
Mr. Navallier’s hedge fund firm predominantly focuses on growth equity investments, as he believes stock selection in growth stocks can deliver far superior returns to passive index investing. In fact, The New York Times called Louis Navellier “an icon among growth stock investors,” so retail investors should definitely examine his quarterly moves and market commentaries (why not attempt to figure out his market-beating formula by examining 13F filings?) Apart from successfully managing his hedge fund vehicle for more than three decades, Mr. Navellier is also famous for authoring the bestseller titled “The Little Book That Makes You Rich.” As Navellier & Associates recently submitted its 13F filing for the June quarter with the SEC, Insider Monkey decided to compile a list of five utilities stocks the Nevada-based asset manager favored during the second quarter of 2016. Aside from increasing exposure to individual utilities companies, the asset manager also initiated a new position in the iShares U.S. Utilities ETF that tracks the investment results of an index composed of U.S. equities in the utilities sector.
At Insider Monkey, we track around 730 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details).
#5. WEC Energy Group Inc. (NYSE:WEC)
– Shares Owned by Navellier & Associates (as of June 30): 22,455
– Value of Navellier & Associates’ Holding (as of June 30): $1.47 Million
Navellier & Associates upped its position in WEC Energy Group Inc. (NYSE:WEC) by 80% during the second quarter of 2016 to 22,455 shares. The position was worth $1.47 million at the end of the quarter. The diversified holding company with natural gas and electric utility operations and a 60% equity ownership interest in a for-profit electric transmission company has seen its market cap increase by 21% since the beginning of the year. WEC Energy Group, which services around 1.6 million electricity customers and 2.8 million natural gas customers, posted second-quarter revenue of $1.6 billion, up from $990 million reported for the second quarter of 2015. The increase was primarily driven by the $5.7 billion-acquisition of fellow power and gas company Integrys in late June of 2015. The energy company’s boardroom recently approved a quarterly cash dividend of $0.495 per share, which yields 3.17% annually. LMR Partners, founded by Ben Levine, Andrew Manuel and Stefan Renold, owns 6,582 shares of WEC Energy Group Inc. (NYSE:WEC) as of June 30.