EUROPE’S ENERGY CRISIS IS KEEPING ENERGY PRICES HIGH
America leads the world in oil and gas production. We believe midstream energy infrastructure offers predictable cash flows to investors.
Why the Euro is Likely to Remain a Good Short, and Another Good Year in MLPs
Euroland euphoria has broken out – so say Ambrose Evans-Pritchard and Louise Armitstead of the Daily Telegraph. Mario Draghi rode to the rescue with Long Term Repo Operations (LTRO), and it’s now reported that Eurozone banks borrowed 489 billion Euros from the ECB for three years. If they are so moved they can engage in the carry trade, […]
Why We Still Prefer Equities over Bonds, Dollars over Euros and Devon Energy
Barron’s has a couple of interesting articles this weekend. They lead with “Buckle Up”, and make the case for equities by highlighting the very wide equity risk premium (the S&P500 earnings yield of 8% minus the yield on ten-year treasuries of 2%) something we’ve also noted in the past. This spread is historically wide and, […]
The Hedge Fund Mirage – In Print!
My book, The Hedge Fund Mirage, is finally in print and making its way up the Amazon Best Sellers list (currently in the top 3%). The hedge fund industry has co-operated in its launch by delivering the second worst year in history. Not all hedge funds are bad though, and since some of the most […]
MLPs Offer Steady Income and Exposure to Shale Gas Development
The New York Times today has a piece on Richard Kinder, founder of Kinder Morgan (KMP) the largest publicly traded partnership in the U.S. KMP recently agreed to acquire El Paso Corporation to create an entity controlling 80,000 miles of pipeline crisscrossing the U.S. KMP is a Master Limited Partnership (MLP), which is to say that owners of LP […]
Why We Should Borrow in € and Invest in Natural Gas
As the reality sets in of guiding 26 countries (i.e. the EU less Britain) towards agreement on a common set of revisions to the Treaty, the smug satisfaction of the tabloid press and at least a substantial minority of the British population is almost palpable even here on the U.S. side of the Atlantic. One by […]