DCP Midstream, LP (DCP) Stock Returned 19x in Three Years

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Legacy Ridge Capital Management, LLC recently published its “Legacy Ridge Capital Partners Equity Fund I” fourth quarter 2022 investor letter, which can be downloaded here. In 2022, the fund returned 12.5% gross and 10.3% net of performance fees compared to a -18.1% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Legacy Ridge Capital highlighted stocks like DCP Midstream, LP (NYSE:DCP) in its Q4 2022 investor letter. Headquartered in Denver, Colorado, DCP Midstream, LP (NYSE:DCP) is an energy company that owns, operates and develops midstream energy assets. February 1, 2023, DCP Midstream, LP (NYSE:DCP) stock closed at $42.04 per share. One-month return of DCP Midstream, LP (NYSE:DCP) was 8.94%, and its shares gained 35.79% of their value over the last 52 weeks. DCP Midstream, LP (NYSE:DCP) has a market capitalization of $8.761 billion.

Legacy Ridge Capital made the following comment about DCP Midstream, LP (NYSE:DCP) in its Q4 2022 investor letter:

"We no longer own DCP Midstream, LP (NYSE:DCP). The common equity position was sold in early 2021 and the preferred shares were sold in late 2021 as new ideas surfaced and as the valuation reached  a more reasonable level. As mentioned in the 2020 letter, in the first quarter of 2020 DCP traded down to $2.20 a share as the forced deleveraging of some closed-end funds blindly obliterated midstream stocks. Now Phillips 66 (PSX)—one of the two owners of the General Partner we had highlighted as providing a theoretical floor for DCP shares—is purchasing all the shares they don’t currently own for $41.75. The transaction is expected to close in the second quarter of this year. That’s a 19x return in 3-years for the brave souls who bought at the bottom (not including the $4.68 of dividends you would have received). Not bad!"


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DCP Midstream, LP (NYSE:DCP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held DCP Midstream, LP (NYSE:DCP) at the end of the third quarter which was 3 in the previous quarter.

We discussed DCP Midstream, LP (NYSE:DCP) in another article and shared the list of biggest natural gas pipeline companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.