NGL Energy (NGL)’s Poor Performance Affected Miller Value Partner’s Q4 Results

Miller Value Partners, an investment management firm, published its ‘Income Strategy’ fourth-quarter 2020 Investor Letter – a copy of which can be seen here. A net return of 19.17% was recorded by the fund for the Q4 of 2020 which is almost twice as much of its benchmark that returned 6.48%. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Miller Value Partners, in their Q4 2020 Investor Letter, said that NGL Energy Partners LP (NYSE: NGL) was one of the top detractors of their portfolio in the fourth quarter of 2020. NGL Energy Partners LP is an energy company that currently has a $329.3 million market cap. For the past 3 months, NGL delivered a 2.41% return and settled at $2.55 per share at the closing of February 12th.

Here is what Miller Value Partners has to say about NGL Energy Partners LP in their Q4 2020 investor letter:

NGL Energy Partners (NGL) dropped 37.0% over the period, though its small weight in the fund meant only 12 basis points (bps) of value detraction. NGL reported EBITDA of $138M, missing consensus of $142 by 3% driven by lower than expected crude and water volumes. Distributable cash flow of $73M beat analyst estimates of $69M and provided 5.5x coverage on the reduced quarterly dividend of $0.10/share (13.6% annualized yield). Since July 1st, NGL has retired $75M of unsecured notes, bringing Year-to-Date (YTD) repurchases to $125M. Management remains fully committed to deleveraging and noted a Joint Venture (JV) for the Water business is likely by year-end. NGL exited the quarter with $3.3Bn in total debt, $122M of liquidity, leverage of 5.3x, and remains in full compliance with all debt covenants.”

NGL delivered a -73.02% return in the past 12 months. Our calculations show that NGL Energy Partners LP (NYSE: NGL) does not belong in our list of the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 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. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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