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Billionaire Lemann Bets Heavily On Canada, Energy, Railways

Jorge Paulo Lemann is one of the richest people in the world with a net worth of around $27 billion. He is the founder of investment fund giant 3G Capital Partners LP along with fellow billionaires Carlos Alberto Sicupira and Marcel Herrmann Telles. These three founders, who are famously known as the “Three Musketeers” in Brazil, have acquired some of the biggest global consumer companies through their private equity firm. The fund is also heavily focused on the energy sector, with stocks from this industry forming 43% of the fund’s total 13F holdings at the end of September, 2016. In the article below, we look at some the fund’s top holdings.

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Jorge Paulo Lemann

Canadian Pacific Railway Limited (USA) (NYSE:CP) is the 4th largest 13F holding of 3G Capital Partners, with the fund holding shares valued at $77.8 million at the end of the third quarter. During this quarter, the fund added 434,054 shares, making it the fund’s biggest 13F buy. Canadian Pacific operates a transcontinental railway in Canada and the United States with a train network of 12,500 miles. The company reported better than expected revenues and earnings in the last quarter. Topline of $1.55 billion with a net income of $320 million handily beat analyst expectations for the third quarter. Canadian Pacific Railway Limited’s (USA) (NYSE:CP) ownership among funds covered by us increased by 1 to 32 during the third quarter. The aggregate value of their holdings in the stock increased to $2.23 billion from $2.13 billion quarter over quarter.

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Halliburton Company (NYSE:HAL) is the fund’s second largest 13F energy holding. 3G Capital Partners initiated a position in this stock by buying 1.5 million shares during the third quarter. The stock formed 5.38% of the funds total 13F portfolio at the end of September, 2016. Halliburton Company (NYSE:HAL) is one of the biggest service providers to the upstream oil and gas industry with a market value of $45 billion. It’s stock price has seen a recovery in tandem with the increase in crude oil prices. Analysts are mostly upbeat about this company with 32 out of the 41 porfessionals covering the stock rating it as a buy. The new Trump administration and OPEC deal could be positive catalysts for the stock in the near term. However, the company’s popularity decreased amongst the funds that we track, going down to 56 in the third quarter from 62 during second quarter.

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