The turmoil in the market is unlikely to subside anytime soon, and that should continue to boost stable utility stocks like Atmos Energy (ATO), ONE Gas (OGS), MGE Energy (MGEE) and LaClede Gas (LG), said Skip Aylesworth, portfolio manager of the Hennessy Gas Utility Fund (GASFX). The Hennessy Gas Utility Fund is up 6% thus far in 2016, according to fund-tracker Morningstar. The $1.4 billion fund has returned an average of 11% annually over the past five years, outpacing 90% of its peers in Morningstar’s utility category. Shares of Dallas, Texas-based Atmos Energy (ATO), for example, are up 10% year-to-date. The natural gas distributor, which Aylesworth describes as a ‘bread and butter’ utility, yields 2.4%. ‘It’s a fairly boring business, but it is straightforward and has been a good investment at this time with no commodity exposure to oil at all,’ said Aylesworth.
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