Rigorous Due Diligence

The MLP sector is made up of a number of businesses that range from petroleum products pipelines to natural gas compression, our job is to understand all of these businesses so you don’t have to. Our portfolios are based on our rigorous research and due diligence process in an attempt to ensure you are invested wisely. Potential portfolio holdings are screened based on three primary metrics: Valuation Performance, Scenario Analysis Performance, Management Ranking.

Valuation Performance

We maintain detailed, bottoms-up models on all potential portfolio companies. We use our models to value each individual business owned by the MLP based on that specific business's cash flow outlook, and risk profile. It is our in-depth and detailed understanding of these businesses that makes our valuation models and our sensitivity models such powerful tools.

Scenario Analysis

Our goal is to diligently assess our investments to avoid owning MLPs that are forced to cut distributions. Our primary tool for detecting where such risk exists is our scenario analysis process through which we test the partnership's ability to withstand various commodity price, volume, and interest rate environments. We believe that by concentrating on reducing these risks we can provide better long-term performance for our investors.

Management Ranking

Experience has taught us the importance of management acumen. We rank management teams based on their experience, past performance and their understanding of their own cost of capital.