The power infrastructure sector and grasp restricted partnership shares are due for a leap in 2016 after you have crushed up this yr, Tortoise Capital Advisors’ Rob Thummel stated Monday.
Like different securities connected to the power business, power infrastructure MLPs have noticed valuations plunge right through a more or less 60 % rout in oil costs since ultimate summer time. The Alerian Power Infrastructure ETF is down about 43 % this yr.
However Thummel famous that MLPs are lately making improvements to money drift, making their stability sheets glance more fit. On the similar time, he sees the supply-demand imbalance narrowing in 2016.
Some MLPs also are paying out sexy dividend yields, he stated, so buyers receives a commission to attend out the power downturn. The yield at the Alerian ETF is just about four %.
“Presently, the place MLPs are buying and selling, how they have got traded off, which does not in point of fact fit up with their basics, I would be purchasing MLPs on a daily basis,” the portfolio supervisor advised CNBC’s “Rapid Cash: Halftime Document.”
Supply : CNBC