ClearBridge Investments, an investment management firm, published its “Global Infrastructure Income Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. On a relative basis, measured against the S&P Global Infrastructure Index, the ClearBridge Global Infrastructure Income Strategy underperformed during the first quarter. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
In the Q1 2021 Investor Letter, the fund highlighted a few stocks and Nextera Energy Partners LP (NYSE:NEP) is one of them. Nextera Energy Partners LP (NYSE:NEP) is a renewable energy company. In the last three months, Nextera Energy Partners LP (NYSE:NEP) stock lost 1%. Here is what the fund said:
“NEP is a growth-oriented contracted renewables company formed by its sponsor and general partner NextEra Energy (NEE) to own, operate and acquire contracted renewable energy generation assets located in North America. Growth comes from the dropdown of assets from NEE and we anticipate this should allow NEP to provide 12%–15% dividend growth to 2024. Shares were higher amid an improved renewables project backlog following fourth-quarter results. Continued positive green policy news following the Democrats’ runoff election wins also raised expectations of green fiscal stimulus.”
In Q4 2020, the number of bullish hedge fund positions on Nextera Energy Partners LP (NYSE:NEP) stock increased by about 45% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in NEP’s growth potential. Our calculations showed that Nextera Energy Partners LP (NYSE:NEP) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.