New York-Based Selz Capital’s Top Picks for Q3; High-Yielding Macquarie Infrastructure Corp (MIC) Retains Top Spot

#2. Magellan Midstream Partners L.P. (NYSE:MMP)

– Number of shares owned by Selz Capital LLC as of June 30: 434,650

– Value of Selz Capital LLC’s holding as of June 30: $33.03 Million

Selz Capital LLC did not adjust its position in Magellan Midstream Partners L.P. (NYSE:MMP) during the three months that ended June 30, having remained with 434,650 shares valued at $33.03 million. This position accounted for 9.4% of the fund’s overall portfolio. The shares of the publicly traded limited partnership engaged in the transportation, storage and distribution of refined petroleum products and crude oil are up 8% so far in 2016. In mid-June, analysts at Seaport Global Securities initiated coverage on MMP with a ‘Buy’ rating and a price target of $82, saying that the company’s refining-focused services are insulated from the volume declines observed in the industry and its expansion efforts could lead to higher distributions. In late April, the board of directors of MMP increased the partnership’s quarterly cash distribution to $0.8025 per unit from $0.7175 paid for the first quarter of 2015 and $0.785 paid for the fourth quarter of 2015. The latest quarterly cash distribution yields 4.34% annually. Jim Simons’ Renaissance Technologies acquired a new stake of 157,616 shares of Magellan Midstream Partners L.P. (NYSE:MMP) during the March quarter.

#1. Macquarie Infrastructure Corp (NYSE:MIC)

– Number of shares owned by Selz Capital LLC as of June 30: 1.01 Million

– Value of Selz Capital LLC’s holding as of June 30: $74.93 Million

Macquarie Infrastructure Corp (NYSE:MIC) was the largest holding in Selz Capital LLC’s portfolio at the end of the June quarter, accounting for 21.3% of the fund’s entire portfolio. The 1.01 million-share position did not suffer any adjustments during the quarter and was valued at $74.93 million on June 30. Macquarie Infrastructure owns, operates and invests in a diversified group of businesses, including a bulk of liquid terminals business; a provider of fuel, terminal and hangar services; controlling interests in gas-fired, wind and solar power facilities; as well as a gas energy company. The company paid shareholders a quarterly cash dividend of $1.20 per share for the first quarter, with the $4.80 per share annualized dividend translating into an annual dividend yield of 6.23%. More importantly, Macquarie Infrastructure plans to increase its 2016 dividend to the range of $5.00-to-$5.10 per share, up from $4.46 a share paid in 2015. Adam Usdan’s Trellus Management Company owns 14,840 shares of Macquarie Infrastructure Corp (NYSE:MIC) as of June 30.

Disclosure: None