Q: I have SOBO, TRP, and ENB. I need to trim my positions. If I wanted to keep my ENB and was aiming for the best diversification, which would make sense to trim: SOBO or TRP. Thanks.
5i Research Answer:
While all three overlap, we would say that ENB and TRP overlap the most in terms of business and size. SOBO is concentrated exposure to liquids pipelines while ENB and TRP are more diversified. SOBO is a much smaller name at just $7B in market cap. Thus for diversification, we think it makes sense to trim TRP.