Liberty Cove Insights
Master Limited Partnerships - Insight Series No. 6, September 2020
Master Limited Partnerships—Insight Series No. 5, June 2020
Master Limited Partnerships—Insight Series No. 4, April 2020
Master Limited Partnerships—Insight Series No. 3, March 2020
Master Limited Partnerships—Insight Series No. 2, 2020
Total Return Swaps: What Do Investors Need to Know? Ever since the 2007–2008 financial crisis, many investors have become wary of using derivative contracts of any kind. With Collateralized Debt Obligations (CDO’s) at the technical heart of the mortgage meltdown and subsequent financial panic, all but institutional investors have shied away from using these financial tools and have become skeptical of investment products that use them. This short piece provides some background on Total Return Swaps and how Liberty Cove Investors uses them to achieve the desired asset class exposures in our portfolios, without taking undue risk.
Master Limited Partnerships - Insight Series No. 1, January 2020
Advocates of passive investing argue that excess returns cannot be maintained over the long run and prefer a hands-off approach with lower fees. Today’s note examines the numerous factors relevant to this debate for midstream, including the characteristics of the products, applicable risk-return metrics, and the potential for closet indexing.
Despite an ongoing debate about the structure of MLPs versus C-Corps, MLPs remain the most tax-efficient way to own midstream energy infrastructure assets. Even after the passage of tax reform in late 2017 that lowered the corporate tax rate, MLPs maintain a noticeable tax advantage over corporations.
Master limited partnerships (or MLPs) differ from regular stocks in that interests in them are referred to as units and unitholders (not shareholders) are partners in the business. Importantly, these hybrid entities bring together the tax benefits of a limited partnership with the liquidity of publicly traded securities.
With interest rates near historic lows and energy equities also depressed after oil’s rout, financial advisors and investors looking for income and value may be taking a fresh look at the MLP and energy infrastructure space.
Hinds Howard's interview with Will Hershey, an expert in the structuring of MLP-related ETFs.
The majority of constituents (by weighting) in both the Alerian MLP Infrastructure Index (AMZI) and the Alerian Midstream Energy Select Index (AMEI) are maintaining their dividends sequentially, with a few names even growing.