Does Calumet Specialty Products Partners, L.P. (CLMT) Fit LVS Advisory’s “Moderate Risk, High Reward” Portfolio Basket?
LVS Advisory, a New York City-based full-service investment firm, recently released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The LVS Event-Driven portfolio of the fund gained 6.2% (net of all fees and expenses) in 2023 compared to a 12.5% gain for its benchmark High-Yield Bond Index. On the other hand, its Growth Portfolio returned 7.0% during the same period compared to a 26.3% return for its benchmark, S&P 500 Total Return Index. For more information on the fund’s top picks in 2023, please check its top five holdings.
LVS Advisory featured stocks such as Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) in the fourth quarter 2023 investor letter. Headquartered in Indianapolis, Indiana, Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) engages in the production of specialty hydrocarbon products. On February 6, 2024, Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) stock closed at $16.23 per share. One-month return of Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) was -4.25%, and its shares lost 9.18% of their value over the last 52 weeks. Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) has a market capitalization of $1.298 billion.
LVS Advisory stated the following regarding Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) in its fourth quarter 2023 investor letter:
"We recently initiated an investment in Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) in the event-driven portfolio. Calumet fits firmly within the “moderate risk, high reward” bucket of our portfolio for reasons that will be apparent.
Calumet is a refining and specialty chemical company with three hard catalysts expected to play out in the next year. First, the company is planning to monetize its renewable energy business through either an outright sale or an IPO. Second, CLMT is converting its corporate structure from an obscure master-limited partnership (“MLP”) to a Delaware C-Corp. Finally, the company is in the process of refinancing its capital structure with low-cost debt from the Department of Energy. If these catalysts play out as expected, I believe Calumet’s shares could be worth over $30 vs. the current share price of $16; although there are notable risks to achieving that outcome…” (Click here to read the full text)
An oil refinery at night, its chimneys creating a smoky silhouette against a starry sky.
Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) at the end of third quarter which was 5 in the previous quarter.
We discussed Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) in another article and shared the list of largest MLPs. In addition, please check out our hedge fund investor letters Q4 2023 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.
