When Gregory Reid began his career as a wealth manager at Goldman Sachs over 20 years ago, he didn’t plan to become an expert on master limited partnerships (MLPs). But after investing in them over the years, he became convinced that their combination of high income, strong total returns and tax advantages was hard to beat.
So in 2007 he founded RDG Capital, a Houston-based asset and wealth management firm specializing in this once-dormant corner of the market. One major appeal of these publicly traded limited partnerships—which are typically involved in energy infrastructure businesses such as pipelines, storage and transportation—is their high distribution yields. At midyear, the yield of the Alerian MLP Index stood at 5.29%, well above the 3.75% yield for real estate investment trusts, the 3.7% yield for utilities and the 2% yield for the S&P 500 index.
Energy Renaissance
October 1, 2014
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