Salient Capital Advisors, LLC recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
Salient Capital Advisors is an investment management firm based out of Houston, Texas. The company was established in 2002 and is currently headed by CEO Gregory A. Reid. Salient Capital Advisors has grown to 162 employees of which 83 are investment professionals and operates as a subsidiary of its parent company Salient Partners LP. The company utilizes fundamental analysis to make its investment decisions, focusing on measuring the intrinsic values of company stocks through a variety of factors including industry conditions and company management, and technical analysis through charting, reviewing various market and stock activities to determine the movement trends of the market. Salient Capital Advisors invests most heavily in the energy sector, which alone makes up over three quarters of its total asset allocations, and also invests in the utilities and telecommunications, industrials, and transports sectors, among others to a lesser degree, in order of decreasing allocation. The company’s top 10 holdings alone make up almost half of its total holdings and the firm has a turnover rate of 26.7%. Salient Capital Advisors currently holds approximately $5.7 billion in total assets under management spread across over 2,600 accounts, all of which are discretionary accounts. Both of its total number of accounts held and total assets under management have been increasing in recent years with its total managed assets growing significantly from under a billion in assets back in 2010 to well over 5 times that amount today. Salient Capital Advisors mainly caters to high net worth individuals, which alone makes up almost three quarters of its client base, and also provides services to individuals, pension and profit sharing plans, charities, investment companies, pooled investment vehicles, corporations, and state or municipal entities, in order of decreasing clientele. The Salient family of mutual funds currently includes Alternative Beta, Broadmark Tactical Plus, Global Equity, MLP, Risk Parity, and Trend funds.
As of the latest 13F report, the guru’s equity portfolio contained 43 stocks valued at a total of $1.74Bil. The top holdings were LNG(12.18%), ET(10.82%), and TRGP(9.54%).
According to GuruFocus data, these were Salient Capital Advisors, LLC’s top five trades of the quarter.
Kinder Morgan Inc
During the quarter, Salient Capital Advisors, LLC bought 1,764,086 shares of NYSE:KMI for a total holding of 6,853,399. The trade had a 1.69% impact on the equity portfolio. During the quarter, the stock traded for an average price of $17.78.
On 11/10/2022, Kinder Morgan Inc traded for a price of $18.08 per share and a market cap of $40.74Bil. The stock has returned 15.14% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Kinder Morgan Inc has a price-earnings ratio of 16.48, a price-book ratio of 1.33, a price-earnings-to-growth (PEG) ratio of 14.98, a EV-to-Ebitda ratio of 12.09 and a price-sales ratio of 2.22.
The price-to-GF Value ratio is 0.83, earning the stock a GF Value rank of 7.
Cheniere Energy Inc
Salient Capital Advisors, LLC reduced their investment in AMEX:LNG by 229,932 shares. The trade had a 1.65% impact on the equity portfolio. During the quarter, the stock traded for an average price of $151.67.
On 11/10/2022, Cheniere Energy Inc traded for a price of $165.78 per share and a market cap of $41.27Bil. The stock has returned 59.99% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 4 out of 10.
In terms of valuation, Cheniere Energy Inc has a EV-to-Ebitda ratio of -94.92 and a price-sales ratio of 1.35.
The price-to-GF Value ratio is 0.79, earning the stock a GF Value rank of 6.
Enbridge Inc
Salient Capital Advisors, LLC reduced their investment in NYSE:ENB by 612,611 shares. The trade had a 1.41% impact on the equity portfolio. During the quarter, the stock traded for an average price of $42.17.
On 11/10/2022, Enbridge Inc traded for a price of $40.6 per share and a market cap of $82.96Bil. The stock has returned 2.56% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10.
In terms of valuation, Enbridge Inc has a price-earnings ratio of 24.99, a price-book ratio of 1.92, a price-earnings-to-growth (PEG) ratio of 8.62, a EV-to-Ebitda ratio of 12.65 and a price-sales ratio of 2.13.
The price-to-GF Value ratio is 1.04, earning the stock a GF Value rank of 5.
Archaea Energy Inc
Salient Capital Advisors, LLC reduced their investment in NYSE:LFG by 1,469,303 shares. The trade had a 1.24% impact on the equity portfolio. During the quarter, the stock traded for an average price of $17.59.
On 11/10/2022, Archaea Energy Inc traded for a price of $25.8 per share and a market cap of $2.11Bil. The stock has returned 31.70% over the past year.
GuruFocus gives the company a financial strength rating of 3 out of 10 and a profitability rating of 1 out of 10.
In terms of valuation, Archaea Energy Inc has a price-book ratio of 8.91, a EV-to-Ebitda ratio of 88.42 and a price-sales ratio of 9.36.
Crestwood Equity Partners LP
During the quarter, Salient Capital Advisors, LLC bought 699,406 shares of NYSE:CEQP for a total holding of 1,472,920. The trade had a 1.12% impact on the equity portfolio. During the quarter, the stock traded for an average price of $26.7.
On 11/10/2022, Crestwood Equity Partners LP traded for a price of $29.07 per share and a market cap of $3.05Bil. The stock has returned 11.86% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Crestwood Equity Partners LP has a price-earnings ratio of 32.70, a price-book ratio of 1.57, a price-earnings-to-growth (PEG) ratio of 1.37, a EV-to-Ebitda ratio of 11.36 and a price-sales ratio of 0.41.
The price-to-GF Value ratio is 0.91, earning the stock a GF Value rank of 9.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
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