ABOUT OUR COMPANY
ABOUT OUR COMPANY
"We consider ourselves successful only when we meet or exceed our clients' expectations."
"We consider ourselves successful only when we meet or exceed our clients' expectations."
Our Investment Strategy
A Focus on Total Return
General Investment
Objectives
Our main objective is to generate long-term rates of return which have relatively low volatility, as well as low long-term correlation to mainstream equity markets. We invest in publicly traded equities that we feel will produce consistent income which we believe supports capital appreciation.
Currently, the asset classes most supportive of this strategy are energy infrastructure companies such as Master Limited Partnerships (“MLPs”) and certain energy infrastructure corporations.
How We Structure Our MLP Positions
We use a proprietary tiered analysis in which we evaluate each security. We review each security for pricing or valuation, financial strength, distribution or dividends, access to capital, commodity exposure, asset footprint, management team qualification and possible regulatory risks.
Our Investment Process
In managing investment portfolios, our team relies on its disciplined investment process to determine security election, entry points and weightings. Our process incorporates a detailed analysis of the underlying businesses owned and operated by potential portfolio companies. Through this process, we seek to invest in Energy Infrastructure MLPs and corporations that may provide superior capital appreciation, but whose underlying business risks offer an attractive risk/reward balance for shareholders.
Our securities selection process includes a comparison of quantitative and qualitative value factors that are developed through proprietary analysis and valuation models. To determine whether an investment meets our criteria, we will generally look for, among other characteristics, sound business fundamentals, a strong record of cash flow growth, a solid business strategy and a respected management team. We will consider selling investments if we believe that any of the above-mentioned characteristics have changed materially from our initial analysis, or that quantitative or qualitative value factors indicate that an investment is no longer earning a return commensurate with its risk.
Sourcing
We utilize our network of contacts, developed over many years, to help us identify promising investment opportunities. These contacts include buy-side investment managers, sell-side analysts, private market participants, industry contacts and oil and gas professionals. We monitor our universe of potential investments on an ongoing basis, in order to find attractive entry points, as well as exit points to portfolio securities which, in our opinion, have become overvalued. We look for periods of opportunity which often occur when markets overreact to short-term news flows unrelated to our portfolios.
Evaluation
We use a combination of tools to determine valuation including, but not limited to, individual company fundamentals and “peer group” comparative valuation. We evaluate companies’ projects/acquisitions to determine whether opportunities for additional equity issuance may result in useful price inefficiencies. Moreover, we also review fundamental factors ie: availability and cost of capital that affect companies' ability to fund current projects, make cash distributions and service existing debt. Finally, as mentioned above, we seek to use years of relationships with other investment professionals, company management teams and sell-side analysts to fine-tune our decision making.