Here’s What Makes Williams Companies (WMB) A Great Buy

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Global Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Global Fund added 3.00% in the fourth quarter versus MSCI World’s return of 7.77%. For the full year, the Fund added 8.20%, while the MSCI World returned 21.82%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Longleaf Partners Global Fund, in its Q4 2021 investor letter, mentioned The Williams Companies, Inc. (NYSE: WMB) and discussed its stance on the firm. The Williams Companies, Inc. is a Tulsa, Oklahoma-based energy company with a $38.0 billion market capitalization. WMB delivered a 20.12% return since the beginning of the year, while its 12-month returns are up by 32.60%. The stock closed at $31.28 per share on February 28, 2022.

Here is what Longleaf Partners Global Fund has to say about The Williams Companies, Inc. in its Q4 2021 investor letter:

“Williams (39%, 1.46%; 2%, 0.16%), the leading North American pipeline company, was also a strong performer. Transco, the company’s flagship asset, grew revenues and EBITDA organically, but the performance of Williams’s Gulf of Mexico assets was held back by hurricanes. The company’s Northeast Gathering & Processing segment EBITDA increased 7% in an encouraging result. Williams is investing into a promising Wyoming wind project, while reducing emissions across all its legacy assets. Our appraisal of the consolidated value increased 14%, and the stock trades under an 80% P/V with minimal cyclicality and steady FCF, combined with an increased ability and willingness to repurchase shares.”

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Our calculations show that The Williams Companies, Inc. (NYSE: WMB) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. WMB was in 38 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 40 funds in the previous quarter. The Williams Companies, Inc. (NYSE: WMB) delivered an 11.67% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on WMB in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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