In this article, we will discuss the top 10 stock picks of Henry Breck’s Heronetta Management. If you want to skip our detailed analysis of Breck’s history, investment philosophy, and hedge fund performance, you can go directly to Top 5 Stock Picks of Henry Breck’s Heronetta Management.
Henry R. Breck is the Managing Partner and Chief Investment Officer at Heronetta Management and a former CIA employee. He has also served in the United States Air Force and is currently a member of the Council on Foreign Relations. He completed his B.A from Harvard University and received his M.A in Jurisprudence from Oxford.
Henry Breck has vast experience in investment banking and started his career in 1968 at Lehman Brothers. He was made partner at the firm four years later in 1972 and was made Chairman of Lehman Management Company. Before becoming the Managing Partner at Heronetta Management, he served as the Chairman of Ark Asset Management Co. from 1989 to 2008.
Heronetta Management is a hedge fund based in New York with 29 clients. The fund has $208.54 million in assets under management. As of the third quarter of 2021, Enterprise Products Partners L.P. (NYSE:EPD) is the firm’s largest holding with 778,480 shares worth $16.846 million. Most of Heronatta Management’s portfolio revolves around energy and petroleum companies.
Canadian National Railway Company (NYSE:CNI), The Williams Companies, Inc. (NYSE:WMB) and Energy Transfer LP (NYSE:ET) are some of the big names that are a part of Heronetta Management’s portfolio.
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Top 10 Stock Picks of Henry Breck’s Heronetta Management
10. TC Energy Corporation (NYSE:TRP)
Heronetta Management’s Stake Value: $6.37 million
Percentage of Heronetta Management’s 13F Portfolio: 4.91%
Number of Hedge Fund Holders: 22
TC Energy Corporation (NYSE:TRP) is a Canada-based energy company that develops most of the energy infrastructure around North America. The business of the company revolves around liquids and natural gas pipelines along with energy.
According to Heronetta Management’s filings, the fund has 105,550 shares worth $6.37 million, representing 4.98% of the fund’s portfolio.
TC Energy Corporation (NYSE:TRP) is one of the significant names in Heronetta Management’s fund portfolio along with Canadian National Railway Company (NYSE:CNI), The Williams Companies, Inc. (NYSE:WMB) and Energy Transfer LP (NYSE:ET).
9. Pembina Pipeline Corporation (NYSE:PBA)
Heronetta Management’s Stake Value: $6.46 million
Percentage of Heronetta Management’s 13F Portfolio: 4.98%
Number of Hedge Fund Holders: 15
Pembina Pipeline Corporation (NYSE:PBA) is a transportation and storage infrastructure company that delivers natural gas and oil around the Western Provinces of Canada. The company converted from a trust to corporation in 2010.
Pembina Pipeline Corporation’s (NYSE:PBA) largest stake is owned by Heronetta Management, followed by Arrowstreet Capital which increased its activity in the company by 897% in the third quarter of 2021.
Pembina Pipeline Corporation (NYSE:PBA) is one of Heronetta Management’s top picks along with Canadian National Railway Company (NYSE:CNI), The Williams Companies, Inc. (NYSE:WMB), and Energy Transfer LP (NYSE:ET).
8. Canadian Pacific Railway Limited (NYSE:CP)
Heronetta Management’s Stake Value: $7.196 million
Percentage of Heronetta Management’s 13F Portfolio: 5.54%
Number of Hedge Fund Holders: 25
Canadian Pacific Railway Limited (NYSE:CP) is a Canadian Class I railway that owns 12,500 miles of tracks in Canada and the conterminous United States. Its famous subsidiaries include Canadian Pacific Railway, TTX Company, Eastern Railroad and St. Lawrence and Hudson Railway.
On 1st November, Emissions Reduction Alberta announced a $15 million grant with which Canadian Pacific Railway Limited (NYSE:CP) will expand the scope of its Hydrogen Locomotive Program. With this grant, the company is looking to install hydrogen production and fueling facilities at CP rail yards in Calgary and Edmonton.
Canadian Pacific Railway Limited (NYSE:CP) made its way on Heronetta Management’s top picks with Canadian National Railway Company (NYSE:CNI), The Williams Companies, Inc. (NYSE:WMB), and Energy Transfer LP (NYSE:ET).
ClearBridge Investments mentioned Canadian Pacific Railway Limited (NYSE:CP) in its investor’s letter published in the first quarter of 2021. Here is what it said:
“We reoriented the portfolio for a more cyclical market in the fourth quarter and saw good performance in these areas from structural growth companies like Canadian Pacific Railway, which we repurchased during the quarter. After announcing the acquisition of Kansas City Southern, Canadian Pacific pared gains that will create the first rail operator connecting the U.S., Mexico, and Canada.”
7. Canadian National Railway Company (NYSE:CNI)
Heronetta Management’s Stake Value: $7.48 million
Percentage of Heronetta Management’s 13F Portfolio: 5.76%
Number of Hedge Fund Holders: 40
Canadian National Railway Company (NYSE:CNI) is a Canadian Class I freight railway with a 20,400-mile network spanning from Canada to the USA. According to its recent filings, Heronetta Management owns 51,000 shares of the company worth $7.48 million.
On 27th October, CIBC analyst Kevin Chiang downgraded Canadian National Railway Company (NYSE:CNI) from Outperform to Neutral while the price target remained the same at $170. The price target was increased from $160 to $170 just two days before the downgrade by BMO Capital analyst Fadi Chamoun.
Canadian National Railway Company (NYSE:CNI) is one of the biggest names besides The Williams Companies, Inc. (NYSE:WMB), and Energy Transfer LP (NYSE:ET) in Heronetta Management’s portfolio.
6. Enbridge Inc. (NYSE:ENB)
Heronetta Management’s Stake Value: $7.68 million
Percentage of Heronetta Management’s 13F Portfolio: 5.92%
Number of Hedge Fund Holders: 19
Enbridge Inc. (NYSE:ENB) is a multinational pipeline company that operates Canada’s most extensive natural gas distribution system. The company owns crude oil and natural gas pipelines throughout Canada and the USA. About 20% of the natural gas consumed in the United States is transported by Enbridge Inc. (NYSE:ENB).
Apart from fossil fuels, Enbridge Inc. (NYSE:ENB) has started several projects consisting of renewable energy across Europe and North America. By 2050, Enbridge Inc. (NYSE:ENB) proposes to have zero greenhouse gas emissions.
On 8th November, RBC Capital analyst Robert Kwan kept an Outperform rating on the Enbridge Inc. (NYSE:ENB)’s shares and raised the price target from $57 to $61.
ClearBridge Investments mentioned Enbridge Inc. (NYSE:ENB) in the “Global Infrastructure Value Strategy” second quarter 2021 investor letter. Here is what the firm said:
“On a regional basis, the U.S. and Canada was the top contributor to quarterly performance, of which Canadian energy infrastructure company Enbridge was one of the lead performers. Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. The company also owns regulated gas distribution utilities in Ontario, Canada. Enbridge’s Line 3 Replacement Project received a favorable court ruling regarding the adequacy of its Environmental Impact Statement. This significantly lowers the execution risk for the project and enables the company to place the project into service later in the year.”
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Disclosure: None. Top 10 Stock Picks of Henry Breck’s Heronetta Management is originally published on Insider Monkey.
