Here’s Why Miller Howard Trimmed its CenterPoint Energy (CNP) Stake

Miller Howard Investments, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.5% (yield) was recorded by the fund for the third quarter of 2021, compared to the 1.5% for the S&P 500 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.

Miller Howard Investments, in its Q3 2021 investor letter, mentioned CenterPoint Energy, Inc. (NYSE: CNP) and discussed its stance on the firm. CenterPoint Energy, Inc. is a Houston, Texas-based utilities company with a $17.5 billion market capitalization. CNP delivered a 28.70% return since the beginning of the year, while its 12-month returns are up by 30.02%. The stock closed at $27.85 per share on December 29, 2021.

Here is what Miller Howard Investments has to say about CenterPoint Energy, Inc.  in its Q3 2021 investor letter:

“In late August, we increased the portfolio’s cyclical exposure by trimming utilities after a period of relative outperformance and reallocating the capital to midstream energy, which had pulled back over the summer. Additionally, we trimmed CenterPoint Energy (CNP) after periods of relative strength. We had previously increased our positions in late 2020 and February 2021, respectively, after periods of relative weakness.”

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Based on our calculations, CenterPoint Energy, Inc. (NYSE: CNP) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. CNP was in 14 hedge fund portfolios at the end of the third quarter of 2021, compared to 20 funds in the previous quarter. CenterPoint Energy, Inc. (NYSE: CNP) delivered a 10.91% return in the past 3 months.

In November 2021, we published an article that includes CNP in the 11 Best Utility Stocks To Buy Now. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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