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Individual Investor
Dan Plettner
Financial Services
- Education New York University; Miami University of Ohio
- Qualifications MBA, BS
- Investment Experience Approximately 20 years
MLP Direct Ownership
The MLP Direct Ownership strategy seeks to offer the long term tax-advantages of investing in Master Limited Partnerships through ownership of publicly traded MLP units.
An MLPs combine the corporate tax advantage benefits of a limited partnerships and are publicly traded on securities exchange. Most MLPs invest in natural resources, including oil and natural gas extraction and transportation.
MLPs generally offer stable yield, as they are required by contract to pay minimum quarterly distributions to the limited partners. The potential target annual yield of my portfolio strategy is 6-7%.
An MLPs combine the corporate tax advantage benefits of a limited partnerships and are publicly traded on securities exchange. Most MLPs invest in natural resources, including oil and natural gas extraction and transportation.
MLPs generally offer stable yield, as they are required by contract to pay minimum quarterly distributions to the limited partners. The potential target annual yield of my portfolio strategy is 6-7%.
My investment strategy approaches individual MLPs from a long term perspective. I seek to maximize the tax efficiencies offered by MLPs. I tend to avoid investments that I believe have excessively large incentive distribution rights to the general partner, which I see as a potential conflict of interest and a possible sign of long-term investment risks.
The MLP structure is limited by US Code to only apply to enterprises that engage in certain businesses. Most pertain to the use of natural resources (ie: petroleum and natural gas extraction and transportation).
In a space cluttered with extraordinary IDRs ("Incentive Distribution Rights" to the General Partner), the model seeks to select MLPs where management is perceived least subject to conflicted interest that hazard ordinary investors.
Tax efficiencies of MLP structures may be degraded through ETFs, ETNs, or Closed-End Funds alternatives. The model does not use ETFs, ETNs, or Closed-End Funds. The model approaches individual MLPs from a long term perspective.
Much of my research focuses on seeking long-term values. I also perform research in an effort to avoid MLPs that I believe have managerial conflicts of interest that could negatively affect returns.
I typically hold fewer than 20 individual MLP positions. The largest holding is usually smaller than 25% of the entire portfolio. My focus is on keeping exposure to long-term holdings while minimizing investment turnover.
I typically sell positions when I believe that an MLP’s risk has become greater than its potential reward.
None.
Model commentary
Why I'm shorting these three closed-end funds
14 May 2013
All three trade at unjustified premiums to their NAV.
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