Is Infrareit Inc. (NYSE:HIFR) a good investment opportunity? Phill Gross and Robert Atchinson seem to think so, as their fund, Adage Capital Management, has made a huge addition to its position. Whereas the fund held 10,100 shares at the end of the first quarter, the position has been increased to a little over 3.5 million, giving it control over 8.03% of the trust’s outstanding shares, according to a recent filing with the US Securities and Exchange Commission.
Infrareit Inc. (NYSE:HIFR), a real estate investment trust (REIT), is an owner of electricity delivery infrastructure assets in Texas that it leases to Sharyland Utilities, L.P. With a market cap of $770 million, Infrareit’s stock has seen some wild swings in the beginning of 2016 and then slowed down to a crawl since the end of March.
The stock of the $1.09 billion REIT has declined by around 2.3% year-to-date. On June 3, the company announced that its board of directors had approved an annual dividend of $1.00 per share, which at current prices gives the stocks a yield of around 5.56%.
Hedge fund interest in Infrareit Inc. (NYSE:HIFR) picked up during the first quarter, with the number of long positions having increased to 22 at the end of March, from 16 recorded a quarter before. Parag Vora‘s HG Vora Capital Management held 600,000 shares of Infrareit, all of them acquired during the quarter. Israel Englander‘s Millennium Management was also invested, having reported ownership of 475,158 shares, down by 10% during the quarter.
You can access the original SEC filing by clicking here.
Ownership Summary Table
|Name||Sole Voting Power||Shared Voting Power||Sole Dispositive Power||Shared Dispositive Power||Aggregate Amount Owned Power||Percent of Class|
|Adage Capital Partners||0||3,500,100||0||3,500,100||3,500,100||8.03%|
|Adage Capital Partners GP||0||3,500,100||0||3,500,100||3,500,100||8.03%|
|Adage Capital Advisors||0||3,500,100||0||3,500,100||3,500,100||8.03%|
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