Five MLPs Hedge Funds Love

#1 Energy Transfer Equity LP (NYSE:ETE)

– Number of Hedge Fund Holders (as of September 30): 27
– Total Value of Hedge Fund Holdings (as of September 30): $709.74 million
– Hedge Fund Holdings as Percent of Float (as of September 30): 3.20%

With shares down by almost 60% year-to-date and now yielding 10.28%, many hedge funds like Energy Transfer Equity LP (NYSE:ETE), as it is fast becoming a value stock. Although the company’s management could pull  a ‘Kinder Morgan’ and cut the dividend distribution in light of the challenging industry conditions (perhaps leading to more short term bloodletting), the stock has a substantial long-term upside as Energy Transfer Equity’s future merger with Williams Companies Inc (NYSE:WMB), if approved, should yield $2 billion in annual EBITDA synergies by 2020. Richard Perry’s Perry Capital owned 3.96 million shares of Energy Transfer Equity at the end of September.

Disclosure: none