Description

Tortoise Capital Advisors, L.L.C. (TCA) is a former affiliate (with new contractual relationship) of Atlantic that invests in energy-related master limited partnerships (MLPs).  TCA selects MLPs with a primary focus of midstream assets; experienced management teams; stable cash distributions; strong growth prospects; and good relative values.  MLPs are publicly traded and similar to stocks in many respects.  The distinguishing features of MLPs include historically high dividends compared to stocks; and a company structure that essentially eliminates double taxation at the federal level and reduces their cost of capital.  

Investment Process

Universe

All publicly traded, energy-related MLPs are considered.  This universe of securities exceeds 60 at present.

Research

TCA is committed to internal, fundamental research, including on-site visits.  TCA seeks to identify partnerships with experienced and capable management teams, large equity ownership stakes by either the management teams or the general partner, appropriate governance policies and divisions of cash flows between general and limited partners, and proven operating strategies.  TCA further analyzes the financial statements of each partnership to attempt to identify those with strong market positions, reasonable equity market capitalizations, strong balance sheets, stable cash flows, and excellent growth prospects.

Relative Value

TCA uses a proprietary valuation model, focused on yield and estimated growth rates, to assess each investment.  Relative values are also used to determine portfolio weights.

Decision-Making Process

It takes a unanimous vote of the investment committee to establish a position, and only one committee member’s vote to sell.

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Benchmark

The Atlantic Energy Master Limited Partnership Index, developed and tracked by Atlantic, is used as the benchmark for this product.

Minimum Account Size

Separate account: $500,000, which may be changed at Tortoise’s discretion.

More Information

Please contact Atlantic Asset Management directly for more information or visit Tortoise Capital Advisors at www.tortoiseadvisors.com.

Footnotes

Past performance is no guarantee of future results. No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission. Information has been obtained from sources believed to be reliable but not guaranteed. All investments managed by Atlantic, its affiliates or otherwise described herein entail risks, including the risk of principal loss.  Please consult your financial and tax advisors on the risks of these investments before making any investment decision.  Please see the “Terms of Use” page of our website for important information and disclosures relating to this website and our services.  This is not a recommendation or offer of any particular security, strategy or investment product, but is distributed for educational purposes only.