EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES AND INFLATION HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors..
MLPs Misbehaving
I’m currently reading Misbehaving: The Making of Behavioral Economics, by Richard H. Thaler. It’s a fascinating book that tells the story of the development of Behavioral Economics as a discipline, and a constant theme is the ongoing debate with his academic colleagues who adhere to the Efficient Markets Theory (EMT). Basically, EMT holds that security prices […]
An Apocalyptic Fund Story
The Four Horsemen of the Apocalypse, as far as long term investment returns are concerned, are excessive fees, leverage, taxes and over-trading. Any one of these can be relied upon to eat into the results sought by the long term investor. Add an excess of all four and you wind up with a toxic brew […]
MLP Earnings Provide Update on Fundamentals
Energy investors have seen their holdings buffeted of late by the price of oil, and Master Limited Partnerships (MLPs) have been no exception to this. Their prices have moved as if they have substantial exposure to oil, whereas midstream MLPs are most notable for their cashflows being predominantly fee-driven. Over the past few days several […]
The Sky High Expenses of MLP Funds
If the arcane tax accounting of the mutual funds and ETFs that invest in Master Limited Partnerships (MLPs) is of no interest to you, let me save you some time and advise you to skip reading. As the rest of you who have proceeded past the warning probably know, the attractive tax-deferred yields offered by […]
MLPs Will Fluctuate
MLPs continue to be weak. Through yesterday the Alerian Index is -15.1% YTD and has now fallen 26.6% from the peak last August. This trend has accelerated in recent weeks. Since we are only now heading into earnings season for many names, the moves of late have been driven largely by macro issues. The drop […]