MacQuarie Infrastructure LLC (MIC)

A favourite name. There is significant value here. They bought out their bulk liquids business from a partner. 6% dividend yield that will grow.

(A Top Pick August 20/12. Up 42.1%.) Tremendous business 4 or 5 subsidiaries. Still further upside to this name. Worth $60-$65.

(Best call ever made.) This is one where he had adhered to his discipline and he has been rewarded handsomely. Has the ability to create value going forward.

One of the challenges for the infrastructure business is that infrastructure assets require lots and lots of debt. In an environment where we are moving into the refinancing of debt is going to be coming at higher rates. This is not a category that he is really hot on.

Issue with infrastructure is that there is going to be real growth in that area. A lot of governments have infrastructure assets that they will have to get off their books. There is a great opportunity to buy those assets and get good returns on those assets. This company is in a good position to do that. They can manage the assets to throw off cash and fund dividends.

A conglomerate that has had a tremendous run. He did some work and uncovered some value that the market was not recognizing. $48-$49 on the basis of $3 free cash flow generation and continuation of the dividend. 5.89% dividend.