EducationNew York University; Miami University of Ohio
Investment ExperienceApproximately 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.
MLPs include the corporate tax advantage benefits of limited partnerships. 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 portfolio 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 portfolio does not use ETFs, ETNs, or Closed-End Funds. It 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.
Other Asset Class
Yield, Sector Focus
Inception August 02, 2010
|as of March 06, 2014
||Manager (net of fees)
|Past 30 days
|Past 90 days
|Past 365 days
|Since Inception (Annualized)
Last 365 days
|as of March 06, 2014
||Manager (net of fees)
|Best 30 days
|Worst 30 days
|Value-at-risk (95%, 1 week)
||vs. Alerian MLP
||vs. S&P 500
Average trades per month 0.2
Past performance is no guarantee of future results.
Performance of the portfolio 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
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 portfolio. 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
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 portfolio. The minimum amount is determined by Covestor, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.
The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.
Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations. Benchmarks presented are total return and therefore inclusive of cash, dividends and earnings distributions but not transaction costs.
Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
All Portfolio Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has been provided by the Portfolio 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. Portfolio classifications (Approach, Asset Class) are provided by Covestor, and are intended to serve as a general guide.
These securities are currently held in the portfolio manager's brokerage account. Holdings in the "Replicable Holdings" table currently pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may vary.
These transactions were executed in the portfolio manager's brokerage account. Those marked as "Replicable Transactions" 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.
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/Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies Copyright © 2014.