Los Angeles-based Kayne Anderson Capital Advisors’s MLP Fund is looking to put a calamitous 2008 behind it and start fresh.
The $388 million fund, which lost 49% last year, rebounded last month, to an extent, gaining 21.9%.
KAMLP invests primarily in publicly-traded master limited partnerships that own and operate energy-related infrastructure assets.
“MLPs are under-appreciated and defensive in nature, due to having steady cash flow, and stable long-lived assets that are vital to the economy,” according to the firm. “MLPs are weakly correlated to the broader debt and equity markets. We believe well-run MLPs will consistently grow cash distributions via accretive acquisitions and high-return internal investments. MLPs have an attractive average current yield in excess of 8%, which on average, is 75% to 85% tax deferred.”
Kayne Anderson’s other hedge funds—the Mid-Stream Energy Fund, which dropped 70.48% in 2008, and the Kayne Anderson Capital Income Fund, a multi-strategy offering that dropped 58.87%—also started off the year in good shape gaining 27.79% and 3.9%, repsectively.
Kayne Anderson, founded in 1984, manages some $6 billion in total assets.