FPA Queens Expects South Jersey (SJI) to Continue its History of Slow but Steady Normalized Earnings Growth

FPA Queens Road, an investment management firm, published its “FPA Queens Road Small Cap Value Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000 Value TR USD Index in the quarter, delivering a -2.53% return against the index’s -2.98% return for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

FPA Queens Road Small Cap Value Fund, in its Q3 2021 investor letter, mentioned South Jersey Industries, Inc. (NYSE: SJI) and discussed its stance on the firm. South Jersey Industries, Inc. is a Folsom, New Jersey-based publicly held energy services holding company with a $2.7 billion market capitalization. SJI delivered a 12.67% return since the beginning of the year, while its 12-month returns are up by 5.47%. The stock closed at $24.28 per share on November 26, 2021.

Here is what FPA Queens Road Small Cap Value Fund  has to say about South Jersey Industries, Inc.  in its Q3 2021 investor letter:

“South Jersey Industries shares fell due in part to the cancellation of the PennEast pipeline. The pipeline, which SJI was to be a partner in, was slated to deliver 1.1 billion cubic feet per day of natural gas from the Marcellus shale region to New Jersey and Pennsylvania. While the regulatory environment in New Jersey has historically been favorable, the state’s role in preventing the PennEast pipeline’s construction is causing us to reassess the regulatory environment there. The company currently pays a 5.5% dividend yield and is expected to continue its long history of slow but steady normalized earnings growth.”

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Based on our calculations, South Jersey Industries, Inc. (NYSE: SJI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SJI was in 17 hedge fund portfolios at the end of the third quarter of 2021, compared to 14 funds in the previous quarter. South Jersey Industries, Inc. (NYSE: SJI) delivered a -0.61% return in the past 3 months.

Disclosure: None. This article is originally published at Insider Monkey.