By: Manisha Sethi Oct. 12, 2018

On August 13, 2018, BP Capital Fund Advisors, LLC, disclosed its SEC 13F filings and  reported a portfolio value of $220.85 million for Q2 2018, of which its top 10 holdings account for 36.31%. BP Capital Fund Advisors’ largest holding is Enterprise Products Partners LP with 452,653 shares. In addition, Energy Transfer Partners, LP. (ETP), Targa Resources Corp. (TRGP), Access Midstream Partners, LP (WPZ), and MPLX LP (MPLX) are among the investor’s top holdings.

BP Capital Fund Advisors, LLC, was founded in June 2013 and is based in Dallas, Texas. It is a privately owned investment manager that manages mutual funds for its clients and invests in public equity, fixed income, and alternative investment markets in the United States. The firm conducts in-house research to make its investments and typically invests in the energy sector. 

According to a Raltin study, 53.75% of BP Capital Fund Advisors’ new purchases between Q1 2014 and Q1 2018 outperform S&P 500. Of these, 33.75% or about 35 new stock purchases outperform S&P 500 by more than 10%. Only 28 out of 80 new purchases underperform S&P 500 by the same margin. A detailed description of Raltin’s methodology can be found here. The following table lists the various categories of new purchases relative to their performance against the S&P 500.

S&P outperformance category Number of new stock purchases Total new purchases (% )
>20% 2531.25
10 to 20%1012.5
0 to 10%810
-10 to 0%911.25
-20 to -10%78.75
<-20%2126.25
Total stocks80

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In Q2 2018, they bought 10 new stocks in the energy and industrials sectors. Energy Transfer Equity, LP (ETE) and Delek US Holdings, Inc. (DK) from the energy sector form 2.22% and 1.43% of the portfolio. The table below lists the investor’s new buys in this quarter along with the number of shares and holding value.

StocksNumber of sharesHolding value ($1,000)
Energy Transfer Equity, LP (ETE)2,83,9894,899
Fluor Corp. (FLR)65,6493,202
Delek US Holdings, Inc. (DK)62,7693,149
CNX Midstream Partners LP (CNXM)1,45,9442,830
Concho Resources Inc. (CXO)18,6382,579
Solaris Oilfield Infrastructure (SOI)1,76,8842,528
Callon Petroleum Co. (CPE)2,23,2192,397
EnCana Corp. (ECA)1,81,5152,369
Marathon Oil Corp. (MRO)1,10,9522,314
Cheniere Energy Partners, LP (CQP)48,3431,738

The following table shows the portfolio value of the fund for 5 quarters, from Q1 2017 to Q1 2016, along with the top holdings in each quarter that outperform S&P 500.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % IRR difference from S&P 500)
Q1 2017217.72ProPetro Holding Corp. (PUMP, 11.68), Summit Materials, Inc. (SUM, 10.95), Huntsman Corp. (HUN, 7.59)
Q4 2016318.63
Q3 2016279.37
Q2 2016252.41JetBlue Airways Corp. (JBLU, 22.43), Newpark Resources, Inc. (NR, 11.51)
Q1 2016193.57Targa Resources Corp. (TRGP, 85.9), Cheniere Energy, Inc. (LNG, 25.02), Cheniere Energy Partners LP Holdings, LLC (CQH, 20.51)