Wednesday, 23 July 2014
Last updated 12 hours ago
Feb 27 2009 | 12:21am ET
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…