Magellan's Utility Growth Strategy
Magellan Asset Management Boosts Stakes in Key Utility and Infrastructure Stocks
Anonymous
Key Points
1
AEP's stock receiving Magellan's 18.6% increase to 403,001 shares is set against a backdrop of broad institutional buying: Vanguard Group Inc. raised its position to 52,496,895 shares (+1.6%), State Street Corp to 30,437,776 shares, Morgan Stanley to 14,661,858, Geode Capital Management LLC to 13,823,744, and Barclays PLC to 10,626,841, leaving approximately 75.24% of AEP owned by institutional investors.
2
CenterPoint Energy shows Magellan's stake at 683,118 shares (0.10% of the company) worth about $29.483 million, with hedge funds owning 91.77% of CNP. Major others include Vanguard (82,381,128 shares), T. Rowe Price (58,286,690), Capital Research Global Investors (20,941,909), Geode Capital (17,023,720) and Norges Bank opening a new position in the fourth quarter.
3
Crown Castle Inc. stands as a meaningfully larger bet for Magellan after a 59.5% jump to 2,855,204 shares, making Crown Castle about 3% of Magellan's holdings and the 8th-biggest position with a reported value of roughly $232.2 million.
4
Atmos Energy shows Magellan's stake rising 30.9% to 181,367 shares, valued at about $33.5 million, with several other funds adding positions as well (Garner Asset Management Corp; JFS Wealth Advisors LLC expanded; Princeton Global Asset Management LLC up 270.2%; Elevated Capital Advisors LLC new stake), and institutional ownership at 90.17%.
5
Avista Corp. remains a notable Magellan holding, up 29.9% to 71,143 shares (about $2.86 million), with institutional ownership around 85.24% and activity from UMB Bank n.a. (+90.7% in Q4) among others adding to stakes like Bayban, Headlands Technologies, Aquatic Capital Management, and CIBC Private Wealth Group.
Magellan Asset Management quietly made a big move into utilities this spring. The firm raised its stake in Crown Castle Inc. by 59.5%, bringing its position to 2,855,204 shares worth roughly $232.2 million, according to Watchlist News. That single holding now makes up about 3% of Magellan's portfolio and ranks as its 8th-largest position.
The Crown Castle bet was just one piece of a broader push. Across five utility and infrastructure stocks, Magellan added shares in every name, with increases ranging from 18.6% to nearly 60%, per filings with the Securities and Exchange Commission.
Crown Castle Jumps to Magellan's Top Ten Holdings
Crown Castle was the standout trade of the quarter. Magellan grew its position by 59.5%, from roughly 1.79 million shares to 2,855,204 shares. The holding is now valued at about $232.2 million, according to Watchlist News. No other stock in Magellan's utility buying spree came close to that dollar size.
Crown Castle owns cell towers and fiber networks across the US. It sits in the crossroads of utilities and infrastructure — exactly the kind of steady, income-producing asset Magellan appears to be chasing right now.
Magellan Lifts Stakes in AEP, CenterPoint, and Atmos
Magellan raised its American Electric Power stake by 18.6%, reaching 403,001 shares worth about $52.8 million. It lifted CenterPoint Energy by 23.3% to 683,118 shares, valued at roughly $29.5 million. Atmos Energy saw the sharpest percentage jump among the three, up 30.9% to 181,367 shares worth around $33.5 million, per Watchlist News.
Each of these companies is a regulated utility. That means their earnings are predictable and often tied to government-approved rates. For a fund like Magellan, that kind of stability can act as a cushion when markets get choppy.
Magellan Also Grows Its Avista Position by 29.9%
Avista Corp., a smaller regional utility, also got a boost. Magellan added shares to bring its total to 71,143, up 29.9%, with the position now worth about $2.86 million, according to Watchlist News. Institutional investors own roughly 85.24% of Avista overall.
Other funds were active in Avista too. UMB Bank lifted its stake by 90.7% in the fourth quarter. Firms like Aquatic Capital Management and CIBC Private Wealth Group also added to positions. The broad buying shows Magellan is not alone in betting on smaller utilities.
Big Institutions Pile Into the Same Utility Names
Magellan's moves fit a larger pattern of institutional buying in utilities. In American Electric Power alone, Vanguard Group holds 52,496,895 shares, State Street holds 30,437,776, and Morgan Stanley holds 14,661,858, per Watchlist News. Institutional investors own about 75.24% of AEP in total.
CenterPoint tells a similar story. Vanguard owns 82,381,128 shares, and T. Rowe Price holds 58,286,690. Hedge funds own 91.77% of CenterPoint overall. Even Norges Bank, Norway's sovereign wealth fund, opened a new position in the fourth quarter. Magellan is buying alongside some of the world's largest money managers.
Sentiment
Mostly PositiveNEGATIVENEUTRALPOSITIVE
Publishers
18
Articles
8
Reach
26
A
AnonymousAuthor