Our goal is to provide investors access to the MLP asset class through what we believe to be a diversified portfolio of primarily midstream companies. Our focus is on businesses that we believe can generate consistent distribution growth through stable, fee-based business models with reduced commodity price exposure. We further attempt to preserve the tax benefits of MLPs through low portfolio turnover and long term gains.
Our approach to managing MLP mutual funds attempts to avoid the shortcomings of most currently available open- and closed-end mutual funds that are subject to corporate taxation. We believe professional management may add significant value to the Fund and the management team at Eagle Global Advisors has a long history of MLP investing and alpha(1) generation.
We believe MLPs are attractive for active management because the limited institutional interest and dominance by retail investors lead to inefficiencies in MLP assets. Professional management using internally generated independent research can have significant value in this investment area. Eagle Global Advisors is based in Houston, Texas which we believe is the knowledge center for both Energy and MLPs.
Eagle Global Advisor's conducts in depth, fundamental analysis of individual partnerships. This includes:
Comparing the mixture of expected growth and income of different partnerships to determine relative value.
Determining opportunistic value using statistical analysis and other methods.
Considering the tax effect of all transactions in determining the attractiveness of any change to the portfolio.
Investing in a portfolio of MLP units and MLP-related securities to attempt to reduce specific company risks.
1Alpha is a term used in investing to describe an investment strategy's ability to beat the market, or its "edge." Alpha is a measure of risk-adjusted performance, the difference between the investment strategy's return and the benchmark return.