Were Hedge Funds Right Betting On These Energy Stocks?

#2 Macquarie Infrastructure Corp (NYSE:MIC)

-Hedge Funds with Long Positions (as of September 30): 69

-Aggregate Value of Hedge Funds’ Holdings (as of September 30): $1.48 billion

Thanks largely to the rise it saw during the first-half of the year, despite an 8.3% fall during the third quarter and 2.76% in the fourth quarter, shares of Macquarie Infrastructure Corp (NYSE:MIC) ended 2015 up by 2.12%. Though the popularity of the company among funds covered by us remained unchanged at the end of September, the aggregate value of their holdings in the company had seen a 28.44% decline during the same period. Jason Karp‘s Tourbillon Capital Partners initiated a stake in Macquarie Infrastructure Corp by purchasing 2 million shares of the company during the third quarter.

Macquarie Infrastructure Corp (NYSE:MIC) is currently one of the best dividend-paying stocks in the energy sector, as it boasts an attractive annual dividend yield of 6.54%. However, analysts and experts are concerned regarding the increasing debt on the company, which they believe can hamper the dividend growth.

In the past few months, some experts have raised concerns about the increasing amount the company’s management is paying itself in fees when the company is not doing so relatively well. For its last quarterly results the Street was expecting Macquarie Infrastructure Corp to report EPS of $0.23 on revenue of $425.92 million, whereas the company declared EPS of $0.13 on revenue of $415.71 million.