Energy-Focused Wexford Capital Reveals Top Stock Picks Dominated by MLPs

#2. AerCap Holdings N.V. (NYSE:AER)

– Number of shares owned by Wexford Capital as of March 31: 863,219

– Value of Wexford Capital’s holding as of March 31: $33.46 Million

Wexford Capital did shy away from showing their bullish views on AerCap Holdings N.V. (NYSE:AER) during the first quarter, as the fund boosted the AerCap stake by a massive amount of 517,489 shares to 863,219 shares. This implies an increase of 149% quarter-on-quarter, with the quarter-end stake being valued at $33.46 million. The Netherlands-incorporated company is the largest independent aircraft leasing company in the world, with roughly 1,670 owned, managed or on order aircraft in its portfolio. The company signed lease agreements for 100 aircraft in the first quarter of 2016, bought six aircraft and completed sale and part-out transactions for 25 aircraft. As a result, AerCap’s basic lease rents for the first quarter of 2016 declined to $1.14 billion from a slightly higher figure of $1.16 billion for the same period in 2015. The shares of AerCap are down 14% year-to-date despite having gained 26% in the past three months. Gifford Combs’ Dalton Investments added a 498,000-share position in AerCap Holdings N.V. (NYSE:AER) to its pool of holdings during the first quarter.

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

– Number of shares owned by Wexford Capital as of March 31: 1.37 Million

– Value of Wexford Capital’s holding as of March 31: $33.66 Million

Enterprise Products Partners L.P. (NYSE:EPD) is the largest position in Wexford’s portfolio as of the end of the March quarter, being valued at $33.66 million. Wexford Capital increased its exposure to the pipeline company by 549,213 shares or 67% during the January-to-March period to nearly 1.37 million shares. Enterprise Products Partners, one of the largest publicly-traded master limited partnerships and a leading provider of midstream energy services, was recently started as ‘Outperform’ at Bernstein, with a price target of $33. Bernstein’s analysts consider Enterprise Products Partners as one of the best MPLs. The MPL currently makes a quarterly distribution of $0.395 per common unit, which implies a $1.58 annual distribution per unit and a dividend yield of 5.97%. Analysts at Merrill Lynch also recently raised their price target on the MPL to $30 from $28. Adam Usdan’s Trellus Management Company has 45,000 common units of Enterprise Products Partners L.P. (NYSE:EPD) as of March 31.

Disclosure: None