Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Billionaire Jorge Paulo Lemann’s Top Five Energy Picks: From Pioneer To Enbridge

3G Capital is a Brazilian investment firm founded in 2004 by Jorge Paulo Lemann, and currently managed by Alexandre Behring. The fund is focused on long-term value investments, and has “a particular emphasis on maximizing the potential of brands and businesses,” its site assures. 3G has repeatedly been on the spotlight for teaming up with Warren Buffett’s Berkshire Hathaway to acquire entire companies – rather than just portions, like it did with Tim Hortons and Burger King, which it then merged to create Restaurant Brands International Inc (NYSE:QSR), and Kraft Foods – later merge with Heinz to create Kraft Heinz Co (NASDAQ:KHC). Quite recently, 3G Capital filed its 13F for the first quarter of 2016, disclosing its long equity positions as of March 31; its portfolio, focused on energy (40%) and consumer discretionary (25%) stocks, was valued at roughly $1.5 billion at the end of the quarter. In this article, we will take a look at the fund’s new and increased energy stakes.

Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see more details here).

#5 Enbridge Inc (USA) (NYSE:ENB)

Shares held by 3G Capital as of March 31: 1.0 million

Value of 3G Capital’s stake as of March 31: $38.88 million

Enbridge became 3G Capital’s twelfth-largest equity stake by the end of the first quarter, after the fund doubled its exposure to 1.0 million shares. The position, valued at almost $39 million, made it the third-largest shareholder among the funds that we track, only outranked by Daniel Bubis’ Tetrem Capital Management and Alec Litowitz and Ross Laser’s Magnetar Capital, which last disclosed ownership of 1.18 million shares and 1.66 million shares, respectively. Shares of Enbridge Inc (USA) (NYSE:ENB) were pretty volatile over the first quarter of the year, but ultimately surged by 17.23%. Over the second quarter, instead, the gains have only reached 1.26% so far. Last week, however, was a strong one for the stock, which rose helped by a first-quarter earnings beat. EPS of $0.76 came in $0.12 ahead of the Street’s expectations.

Follow Enbridge Inc (NYSE:ENB)
Trade (NYSE:ENB) Now!

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.