Master Limited Partnerships
September 2017: MLP Market Update & Sector Sentiment
Master limited partnerships, as measured by the Alerian MLP Index, weakened in August.
September 07, 2017
The strategy seeks total return by investing primarily in the equity of energy and energy-related companies across the energy value chain, as well energy beneficiaries.
The SteelPath Panoramic strategy takes a panoramic (i.e., wide-reaching and comprehensive) view of the investment universe to include both companies across the traditional energy value chain as well as energy beneficiaries (e.g., chemical and other material manufacturers, engineering and construction firms, and other industrial companies). The energy value chain, typically divided into upstream, midstream and downstream, refers to the chain of activities related to the development, production, transportation, distribution, processing and refining of energy.
The OFI SteelPath team employs a fundamental approach to investing with an emphasis on business risk assessment and bottom-up analysis. On a macro level, our commodity price scenario analysis across medium and long-term horizons provides a framework for sub-sector allocation and investment selection. We then seek to perform fundamental, asset-level analysis to find companies with superior risk/reward potential across a range of commodity price scenarios. Furthermore, we intend to focus on capital preservation through intentional portfolio construction, remaining cognizant of cross-sector exposures while attempting to mitigate unintentional commodity or factor bets when appropriate.
Brian Watson, CFA, serves as director of MLP Research and is a senior portfolio manager on the SteelPath team. Prior to joining the Firm in 2009, Mr. Watson was a portfolio manager and led the MLP research effort at Swank Capital LLC, in Dallas, Texas. He also covered the MLP and diversified energy sectors for RBC Capital Markets in the firm’s Equity Research Division.