AlanHHI's  Instablog

In the last ten days two of my four MLPs have done secondaries. First BBEP on 9/7 and then VNR on 9/12. It seems to me this must be a good time for secondaries and I'm wondering whether QRE is next. I've sold about 20% of my position in an IRA so that I can buy it back if the secondary comes.

Disclosure: I am long BBEP, QRE, VNR.

VNR is doing a secondary right now for 6,000,000 units at 27.51 per unit. I think this is a great opportunity to start or add to a VNR position, and I increased my position by 25% an hour ago. Secondaries happen in the MLP world ("Secondaries Happen" is MLP speak for "stuff happens").

Disclosure: I am long VNR.

LINE is a great company and investment, but today I sold some LINE to make room to buy the VNR secondary. I'm trading a stock yielding 7.3% for one yielding 8.75%.

This is the kind of activity that makes a lot of sense when you have MLPs in an IRA. It doesn't make nearly as much sense to trade around like this in a taxable account.

Disclosure: I am long LINE, VNR.