BGG MLP Research Profile Picture Individual Investor

BGG MLP Research

BGG MLP Research

MLP Total Return

The model seeks to earn returns in excess of the Alerian MLP Index by purchasing common units representing limited partner interests in undervalued Master Limited Partnerships, or MLPs. The MLP Total Return model also seeks low portfolio turnover and attempts to avoid short-term taxable events.
The model makes investment decisions based upon the proprietary research of BGG MLP Research, LLC.
BGG MLP Research, LLC has analyzed the annual reports filed with the Securities and Exchange Commission by virtually every publicly traded MLP since January 1, 1995. In addition, BGG MLP Research has created an extensive database on open market purchases and sales made by directors and executive officers at publicly traded MLPs. The MLP total return model makes investment decisions based upon the results of this research.
The MLP Total Return model typically holds between 10 and 20 securities, and typically no single holding will account for more than 20% or more of the total value of the portfolio. Rebalancing usually occurs annually. The  model is heavily concentrated in the energy sector, specifically the upstream and midstream oil and gas subsectors. The model provides little to no exposure to industries outside of the energy industry.
Other than annual rebalancing, the MLP Total Return model sells only based on recession forecasting, heavy sales by MLP insiders, and a proprietary measure of value developed by BGG MLP Research, LLC. The model is not a short-term strategy that attempts to "catch" every market upturn and avoid every market downturn. Rather, it is based upon the following two beliefs: (1) MLPs as an asset class have the potential to outperform the market on average, over time and (2) the application of proprietary research has the potential to enhance these returns further.
The model is subject to constant refinement based on continuing research.

Risk rating

3
11.5%

Best 30 days

-16.9%

Worst 30 days

Performance

  • 2.1%
    30 day
  • -
    365 days
  • 2.7%
    Since Inception
    May 12, 2011
Monthly vs S&P500
Sparkbar Graph, MLP Total Return Investment Model Performance versus S&P500
1.7%

Since Inception

  • $25,000.00 subscription min
  • 0.8% fee

Replicability

0.0%
41.5%
58.5%
100.0%
  • Non-replicable
  • Holdings
  • Cash
  • Replicable

Top 5 Holdings View all

6.7%
6.5%
5.9%
5.9%
6.2%
  • EPB
  • CPNO
  • NS
  • NSH
  • TCP

Model commentary

  1. Deep dives on MLPs in pursuit of excess returns - BGG MLP Research (EPB, WES, PAA)

    12 August 2011

show more


Performance detail

  • Manager
  • Alerian MLP
  • S&P 500
30D 90D 365D SI

Performance

Inception May 12, 2011
as of February 21, 2012 Manager Alerian MLP S&P 500 Average Subscriber
Past 30 days 2.1% 3.4% 3.6% -
Past 90 days 6.7% 13.5% 17.3% -
Since Inception 2.7% 12.9% 1.0% -
2012 (YTD) 3.3% 4.8% 8.3% -

Risk Metrics

Since Inception
as of February 21, 2012 Manager Alerian MLP S&P 500
Best 30 days 11.5% 11.1% 13.6%
Worst 30 days -16.9% -16.0% -16.7%
Volatility 17.8% 20.3% 25.4%
Sharpe Ratio 0.19 0.80 0.04
Sortino Ratio 0.21 1.01 0.06
Maximum Drawdown -17.4% -16.1% -18.8%
Value-at-risk (95%, 1 week) -5.9% -4.7% -5.9%
vs. Alerian MLP vs. S&P 500
Information Ratio -1.60 0.11
Alpha -9.2% 3.0%
Beta 0.81 0.46
R-Squared 0.84 0.43

Latest transactions view all

Average trades per month 2.5
Executed Symbol Security Replicable Type Price
01/23/12 CLMT CALUMET SPECIALTY PRODUCTS Yes Sell $22.00
11/09/11 CLMT CALUMET SPECIALTY PRODUCTS Yes Buy $18.75
10/27/11 PNG PAA NATURAL GAS STORAGE LP Yes Sell $18.65
10/27/11 TLP TRANSMONTAIGNE PARTNERS LP Yes Sell $35.87
10/27/11 MMLP MARTIN MIDSTREAM PARTNERS LP Yes Sell $35.91
10/27/11 RNO RHINO RESOURCE PARTNERS LP Yes Sell $21.14
10/27/11 WES WESTERN GAS PARTNERS LP Yes Sell $35.56
10/27/11 PAA PLAINS ALL AMER PIPELINE LP Yes Sell $65.57
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  • $25,000.00 subscription min
  • 0.8% fee

Important Information

1. Past performance is no guarantee of future results.

2. Performance of the model manager's account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings distributions, and broker commissions. Manager returns include trades that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score restrictions and are exclusive of Covestor fees. More

3. Average subscription returns ("Avg Sub" or "Avg Client") are calculated by Covestor and are composed of the average, daily, time weighted returns of all active subscriptions to the underlying model. These daily average returns are then linked together for the timeframe requested. In addition, these returns include cash, dividends and earnings distributions, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score restrictions. More

4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The subscription minimum is the minimum subscription required to follow a particular model. The minimum amount is determined by Covestor, based on the characteristics of the underlying model. It should not be considered as specific investment advice for your investment situation.

5. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations and do not include cash, dividends and earnings distributions, or transaction costs. More

6. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.

7. All Model Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Model Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent the opinions of Covestor. Transaction history is available upon request. Model classifications (Approach, Asset Class) are provided by Covestor, and are intended to serve as a general guide.

8. Top Replicable Holdings: These securities are currently held in the model manager's brokerage account. Those marked as "Replicable Holdings" currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.

9. Latest Transactions: These transactions were executed in the model manager's brokerage account. Those marked as "Replicable" () passed Covestor's trading rules and were eligible for replication at the time of execution, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription trade activity may vary.

10. S&P 500 Index is an unmanaged index compiled by Standard & Poor´s Corp. Index returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. S&P 500 index data: S&P 500 Copyright © 2012.

11. Dow Jones index data: CME Group Index Services, LLC 2012


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