5 Best Infrastructure Stocks To Buy Now

3. Kansas City Southern (NYSE:KSU)

No of HFs: 53

Total Value of HF Holdings: $1 Billion

Kansas City Southern is a Delaware-registered transportation holding company with railroad investments in the United States, Mexico, and Panama. During the second quarter of 2020, the company reported a revenue of $547.9 million.

In an article published in October, we mentioned hedge fund activity in Kansas City Southern,

“At the end of the second quarter, a total of 47 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 4% from the previous quarter. On the other hand, there were a total of 26 hedge funds with a bullish position in KSU a year ago. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Fisher Asset Management, managed by Ken Fisher, holds the most valuable position in Kansas City Southern (NYSE:KSU). Fisher Asset Management has a $75.4 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Chilton Investment Company, led by Richard Chilton, holding a $70.9 million position; 2.3% of its 13F portfolio is allocated to the stock. Other members of the smart money with similar optimism include Jonathan Barrett and Paul Segal’s Luminus Management, Robert Bishop’s Impala Asset Management and Principal Global Investors’s Columbus Circle Investors. In terms of the portfolio weights assigned to each position Luminus Management allocated the biggest weight to Kansas City Southern (NYSE:KSU), around 6.84% of its 13F portfolio. Mountain Road Advisors is also relatively very bullish on the stock, dishing out 6.56 percent of its 13F equity portfolio to KSU.

As industrywide interest jumped, specific money managers were leading the bulls’ herd. Moore Global Investments, managed by Louis Bacon, established the most outsized position in Kansas City Southern (NYSE:KSU). Moore Global Investments had $19.8 million invested in the company at the end of the quarter. Jeffrey Talpins’s Element Capital Management also initiated a $1.7 million position during the quarter. The other funds with brand new KSU positions are Greg Poole’s Echo Street Capital Management, Anand Parekh’s Alyeska Investment Group, and Benjamin A. Smith’s Laurion Capital Management.”