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Lazard Global Listed Infrastructure: A Solid Defensive Option


  • Late in the cycle I'm especially interested in defensive investments.
  • Infrastructure tends to hold natural monopolies.
  • Prices are often regulated but interest rate or inflation linked.
  • With these defensive characteristics they should withstand a market drawdown better.
  • Looking for more? I update all of my investing ideas and strategies to members of Special Situation Report. Start your free trial today »

As part of my research into Lazard (LAZ) I looked at Lazard Global Listed Infrastructure Portfolio Institutional Shares (MUTF:GLIFX). A very nice find. Often the first thing I do is to look through a fund's portfolio to see what they own. The table below show this fund's largest positions:

Data: Morningstar


Right off the bat I like the many unfamiliar European and foreign sounding names. National Grid (NGG), Edison International (EIX), Red Electrica Corporation (OTC:RDEIF), Fraport (OTCPK:FPRUF) and Societa Iniziative Autostradali e Servizi Siasspa AZ ADR (OTC:SIZAY) are music to my ears. These all sound like proper infrastructure which you want if you're looking at this fund.

I'm less thrilled with the CSX Corp (CSX) and Norfolk Southern Corp (NSC) in this specific portfolio. It's not that I don't like these stocks. In fact I've laid out a bullish case for CSX in May of this year. It's just that the U.S. railroads do have infrastructure type characteristics but also lots of transportation stock characteristics. These companies are exploiting their railroads for their own benefit while I'm more comfortable with infrastructure companies that get paid by others to use whatever monopoly-like infrastructure they own.


-Concentrated: I like the fact 25% of assets have been poured into the top four positions.

-Only about 50% of the portfolio is allocated to the Americas.

-Value bent to the portfolio.

-Turnover isn't too high at 33%.

I've concluded there's a value bent as Morningstar estimates the portfolio trades at 5.5x cash flow, 14x P/E and 2x book value. That's not a demanding average valuation for quality infrastructure type assets.


-I don't like the fund has 46% of assets in utilities.

-Only about 50% allocated to the Americas but virtually nothing to emerging markets.

-Managers have less than a million invested in

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This article was written by

Bram de Haas profile picture

Bram de Haas brings 15 years of investing experience to the table and has over 5 years of experience managing a Euro hedge fund. He is also a former professional poker player and utilizes his bundle of risk management skills to uncover lucrative investments based on special situations.

He is the leader of the investing group Special Situation Report where he offers his community several features, including: a portfolio of actionable special situations, weekly updates on current ideas, ideas across sectors for diversification, select foreign investment ideas in addition to the majority of US market ideas. Learn more.

Analyst’s Disclosure: I am/we are long LAZ. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (3)

BLyda97112 profile picture
National Grid has operations in both the UK and the US. It's interesting just how international the electrical grid is... when I lived in the UK, my electric company was actually a German company... anyway, NGG is pretty solid.
yardbird99 profile picture
The two biggest holdings (total 13.5%) are based in Italy, and have brought down the performance year to date. Otherwise this looks like a promising fund.
check out BIP.
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