Liberty Cove Insights

Master Limited Partnerships—Insight Series No. 3, March 2020

MLP Investing in the Downturn

The unprecedented market volatility that has occurred in the wake of the Coronavirus COVID-19 shock and OPEC+ squabbles has resulted in severe upheaval for Master Limited Partnerships and MLP funds. In this edition of the Liberty Cove Insight Series, MLP Investing in the Downturn, Portfolio Manager Dr. Brian Chen provides his insights about current conditions and some thoughts about the prospects for these yield-oriented investments. 

Master Limited Partnerships—Insight Series No. 2, February 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

Solving the Frustrations of Investing in MLPs.

Master Limited Partnerships (MLPs) can be compelling investments, but investors in these securities face a daunting array of challenges, including complex tax reporting, unrelated business taxable income, under-exposure to the asset class, double taxation, and single-issuer principal counter-party credit risk. Direct investment in MLPs or in various MLP investment vehicles may solve one or more of these issues, but each comes with its own drawback or limitation.


News Items

MLP Dividends are Starting to Get Cut - Stacey Morris, director of research at Alerian, has published reports arguing that the companies are in better shape than these prices indicate. Even if every MLP cut its dividend in half, the sector would still yie
Midstream Updates Point to More Stability Than Price Action Implies - With the oil price landscape having changed dramatically, midstream investors are anxiously awaiting updated company outlooks, even if it is reaffirming past guidance.


The Energy Infrastructure Council, (EIC), a non-profit trade association.
Energy Information Administration