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Midstream Energy/MLP Strategy

The strategy seeks to provide attractive total return and to outperform the Alerian MLP Index over a full market cycle. While yield is a consideration, the portfolio is managed to maximize total return.

  • Seeks to identify mispriced and misunderstood growth opportunities and exploit structural inefficiencies that cause systematic undervaluation of growth-oriented midstream assets
  • Analytical framework incorporates the viewpoint of both equity and credit disciplines
  • Overlay macro viewpoint with fundamental analysis 
  • Growth-oriented with a focus on total return has historically led to alpha generation 
Investment Style
Midstream Focus
STYLE
Benchmark
Alerian MLP
BENCHMARK
Light bulb
Jan. 1, 2009
INCEPTION

Philosophy

The Midstream Energy/MLP team believes that structural inefficiencies of the Midstream market create opportunities for growth investors. Through extensive fundamental research the team seeks to identify underpriced growth opportunities. All midstream assets are considered to seek out the most attractive total return opportunities. Companies with competitive advantages within the energy value chain tend to have better growth opportunities, and the team focuses analysis on company assets and management teams. Structural characteristics of the Midstream industry create opportunities for growth investors as fundamental analysis identifies market inefficiencies. 

Strategy Facts

As of 12/31/2018

 Assets Under Management (AUM) $115 million
 eVestment Universe Master Limited Partnership Universe
 Investment Vehicle Separate Account

  

Portfolio Construction & Risk Management

Bottom-Up

  • Fundamentals-based investment process
    -– In-depth research of industry and company-specific themes
    -– Frequent meetings with portfolio company management teams
    -– Analyst perspectives from both the equity and credit side
  • Position size limits: 10-15%
  • Position sizing reflects investment team’s convictions: 
    -– Higher execution risk leads to lower position sizes

Top-Down

  • Firm-wide proprietary risk management systems
  • Daily performance and risk attribution monitoring

Management

David McColl

David C. McColl

Vice President, Senior Portfolio Manager

Career Summary
Morningstar
Bank of America Merrill Lynch
Canadian Energy Research Institute

Education 
BA - University of Waterloo 
MA - University of Alberta

Meet David McColl
John Wieging

John A. Weiging, CFA

Senior Equity Research Analyst

Career Summary
Star Bank
Fifth Third

Education 
BBA - University of Cincinnati
MBA - Xavier University

Meet John Weiging

Insights

Ferc strikes again

FERC Strikes Again… And Pandora’s Box Was Already Opened

Policy changes have been causing turmoil in the Midstream sector since March. A partial reversal of the policy was announced in July and may have helped restore some confidence in the sector, but can it repair the initial damage?

Dividend Trap

Dividend Trap or Compelling Total Return Opportunities?

Senior Portfolio Manager, David McColl, shares why valuations are compelling and key points from the FERC announcement.

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