Pro-Favorite MLPs Among Month’s Top Performers (EPD, PAA, KMP, MMP, NGLS, NS, BPL, KMR)

Tickerspy’s MLPs Index

MLPS INVESTING IDEAS

• Popular long ideas: KMP, EPD, LINE
• Popular short ideas: TNH, LINE, KMP
• Top dividend plays: RNO, NMM, QRE
• Pro favorites: EPD, PAA, KMI

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MLPS COVERAGE

Typically high-yielding companies that employ a Master Limited Partnership operating structure

• MLPs Jump As Cramer Remains Bullish On Enterprise Products (EPD, XTEX, EEP, ETP, KMP, OKS, CLMT, TNH)
• Plenty Of MLPs Put Under Morgan Stanley's Microscope (MMP, TCLP, NGLS, KMP, SEP, DPM, NS, NSH, ETP, CHKM)
• MLPs Move Higher Despite Shaky Earnings Reports (BBEP, ENP, EVEP, NGLS, EPD, KMP, GMLP)

MLPS CHART

MLPS METRICS

Avg. Market Cap:	$5.8B
Avg. P/E Ratio:	33.9
Avg. Div Yield:	6.7%

Master limited partnerships (MLPs) continued their rally this week, and a look at the sector’s one-month performance shows that select Pro favorites are among the biggest winners. Income-oriented investors are often averse to chasing dividend or distribution plays in a bull market, as the higher the stock runs, the less appealing its yield becomes to new buyers. However, those who bought into Pro picks in the MLP segment a month ago are now ahead by as much as 7%.

A look at the MLPs Index shows that Enterprise Products Partners (EPD), Plains All American Pipeline (PAA), and Kinder Morgan Energy Partners (KMP) were top picks among the Pros, based on their top-15 U.S.-listed equity holdings from the end of Q4. Over the past month, these MLPs have all gained more than 4% while yielding more than 6% based on current values.

Meanwhile, Magellan Midstream Partners (MMP), which was in the top-holdings of 31 Pros at the end of 2009 has added 5.5%. Its current yield is just under 6%.

Back in February, we noted that MLP specialist Tortoise Capital Advisors was largely adding stakes to its top holdings during the fourth quarter. So far it appears the bolstered stakes have paid off for the firm after Targa Resources Partners (NGLS), NuStar Energy (NS), Buckeye Partners (BPL), and Kinder Morgan Management (KMR), among others, have added more than 5% over the past three months.

It will be interesting to see where the Pros were placing bets when the latest 13F filings, due in mid-May, come out. In the meantime, investors can track the MLPs Index for performance trends, Pro holder rankings from the latest filings, and a suite of other metrics at tickerspy.com.

Pro portfolio performance is based on institutions’ top-15 holdings as disclosed in quarter-end filings with the SEC. Pro performance does not take into account additional holdings beyond the top 15 nor does it include positions that are not required to be disclosed by the SEC. As such, Pro portfolio performance should be considered an approximation and not a precise record of how an institution has performed over time.

Tags: BPL, EPD, KMP, KMR, MMP, NGLS, NS, PAA