The low interest rate environment has pushed many investors into alternative investments. Falling commodity prices have triggered massive losses to one alternative – Master Limited Partnership (MLP) investments.
It has been a reminder that investors must focus carefully on the assets underlying their investments. Before making an investment at ROCKHOUSE we always satisfy the question, “Why should we believe that we will receive our next cash flow?”
Kevin Kaiser, an analyst at HedgeEye, has been instrumental in exposing MLP weakness. His willingness to think differently while maintaining a disciplined quantitative approach allowed him to see things that others have ignored:
“If you think the same way as everybody else, you’re not going to make a difference for investors or have a good business model,” Kaiser says. “I’ve had success in a short period of time by exposing businesses that were valued first and foremost for their dividends and saying the dividends weren’t representative of the sustainable cash flows that companies could deliver over time.”