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.
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#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.