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Dan Plettner

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  • Energy Income and Growth Fund: Long Term Qualitative Observations of C-Corporation MLP Vehicle Suggests 'Dip' Perception Is Illusory [View article]
    Dear "Skyraider"

    Perhaps the better question to ask is why someone who is subject to significant dividend taxes in their taxable accounts would consider MLP asset class exposure in their IRAs at all. It would be comparable to holding dividend stocks in a taxable account and municipal bonds in an IRA. In short, the IRA is wasteful of the unique tax advantages afforded by either asset class.

    Congress seems to have made the MLP advantage for taxable accounts exist for much the same reason that it gave states and cities a funding advantage with municipal bonds’ federal taxation advantage… the origin of MLP tax advantages gave domestic energy infrastructure companies an advantage in attracting investment.

    I’m not in any way disputing that more than small holdings in IRAs can pose problems, but such a discussion about significantly sized IRA MLP exposure is is akin to arguing between dumb and dumber… MLP exposure in IRA accounts is inefficient asset allocation on an after tax basis, much like Muni Bond exposure in IRA accounts. For the investor that has significant taxable wealth, why waste the MLP’s advantage by using IRA capital?

    Respectfully Yours,
    Dan Plettner
    Nov 21 09:23 PM | Likes Like |Link to Comment
  • Energy Income and Growth Fund: Long Term Qualitative Observations of C-Corporation MLP Vehicle Suggests 'Dip' Perception Is Illusory [View article]
    Retail or otherwise, there is nothing efficient about proportional performance. Wall Street loves to knock on the K-1 forms associated with more efficient ownership because the inefficient C-Corporation entity bundles better serve their asset gathering business models.

    It is troubling how little respect someone displays for their wealth when they choose inefficient products in the name of convenience. Its more troubling that the asset management industry markets to such a manner of thinking.

    Respectfully Yours,
    Dan Plettner
    Nov 21 09:07 PM | 2 Likes Like |Link to Comment
  • Short-Selling PIMCO Global Stocks Plus and Allianz's Inconsistent Distribution Policy [View article]
    Dear “rheimerl”

    Please know that the primary subject of this piece is not AOD. It was also published by SA as an "Investment View" on PGP, not AOD.

    My position in AOD is disclosed because AOD is discussed in the context of this article. Please notice though that I have not offered a thesis to support my current position in AOD. The last SA “Investment View” publishing of my AOD subject material was dated June 22nd. Since that time, I closed a position and opened a new position.

    Simple observations should be assumed well recognized by all market participants. Differences in the depth of observations may or may not be indicative of the difference between Seeking Alpha’s “articles” and “investment views”. I do recognize that I my current in depth perspective of each of the Alpine Funds is not readily available to the SA community. As time allows, I am interested to provide my current in depth perspective on all the Alpine Funds in detail consistent with my own content standards. If and when I am able to do so, I have no prior knowledge whether SA will deem it appropriate to publish as an Investment View or an article.

    I have no control or influence over SA editorial. SA’s editorial assessments are always their own, not mine. In fact, I occasionally take exception to the standard CEF content that gets published as “articles”. Frankly, some CEF recommendations that get published as “articles” may put the reader in market jeopardy with insufficiently detailed looks at intricate and nuanced CEFs, in my view.

    Respectfully Yours,
    Dan Plettner
    Nov 21 10:41 AM | 2 Likes Like |Link to Comment
  • Observing Claymore's Dividend & Income Fund Among Narrow Closed-End Fund Calls [View article]
    I am not above critique and gave this comment the benefit of any doubt. Without commenting on PMCPman's data, yes, I continue to believe activism is "over here", for many years. The January in-kind tender's fulfillment rate is not without relevance.

    Respectfully Yours,
    Dan Plettner
    Nov 20 03:55 PM | Likes Like |Link to Comment
  • Alerian MLP ETF Has Higher Fee Structure Than Hedge Funds [View article]
    Agree with Ron.. not that "expense" is the accurate technical legal term so much as the practical reality. Remember that a prospectus is written by lawyers not a retail investor. Not sure if "chileman" is attempting to suggesting by "quite clear" that he thinks its "quite clear" to a normal person to the extent that Ron's real person dialogue would offer. But, if that is what "chileman" is suggesting, I respectfully disagree.

    Was speaking today to the editor of the mutualfundreform blog. I think this issue is one that will increasingly become of greater interest to the mainstream media. There is no shortage of documentation of the effect that the C-Corporation structure has on the NAV performance of MLP investing products.

    Respectfully Yours,
    Dan Plettner
    Nov 18 03:19 PM | 1 Like Like |Link to Comment
  • Attractive Entry Points for Closed-End Funds FMO and ETJ [View article]
    This is not the first time Joe Ecqome has revisted my work, whether intentional or not, without citation. It would seem apparent to me that if SA has published a revisiting of my work, however inferior in depth and competency, however poorly bundled with an incompetent recommendation of FMO that the author won't respond to comment critique of, and however different in style, a mere citation of my work would be appropriate.

    Respectfully Yours,
    Dan Plettner
    Nov 16 03:30 PM | Likes Like |Link to Comment
  • Alerian MLP ETF Has Higher Fee Structure Than Hedge Funds [View article]
    Although both versions of the title are figurative, I think the point is clear. The "cost" of the single security wrapper products is horrific.
    Nov 16 02:11 PM | 1 Like Like |Link to Comment
  • Alerian MLP ETF Has Higher Fee Structure Than Hedge Funds [View article]
    Dear Chileman

    Choosing IRA accounts to make MLP asset class allocations does waste the MLP asset classes unique advantage: a perpetual interest free loan from Uncle Sam for a significant portion of the yield.

    Its ironic... the very reason that MLPs are desirable (the perpetual interest free loan enabled by those K-1) is the very thing the asset management industry is telling the public they need to avoid.

    Simple truth is that Mutual Funds, Closed-End Funds, ETFs, and ETNs are significantly inefficient for MLP exposure, in different ways.

    Respectfully Yours,
    Dan Plettner
    Nov 16 02:09 PM | 1 Like Like |Link to Comment
  • Municipal Debt Funds: Are These Yields Unsustainable? [View article]
    There are "so many" funds because the business model for the Advisors is to increase Assets Under Management ("AUM"). Such a business interest (of the fund's sponsors, not shareholders) is served when each new deal is priced. Closed-End Fund IPO's are priced at premiums, and in many cases (ie: CEFs investing in MLPs are C-Corporations and share an awful long term upside NAV inefficiency with AMLP, the ETF) there are reasons the market should value many at a discount from day 1, even beyond the possibility that their Boards treat the AUM as captive.

    The marketplace for Closed-End Funds is tremendously inefficient in my humble view, and likely always will be. What got published here is sadly symptomatic of the level of what passes as "research". Truely researching Closed-End Funds requires more attention to detail and appreciation for various market dynamics than ETFs or open-ends. But often they find themselves owned by people, and worse covered by so called experts who apply the same simplistic vantage points.

    I'm not complaining. I love Closed-End Funds and I love the prospect of market inefficiencies. For the record, I have both long and short positions in Closed-End Muni Funds. It is also appropriate that I disclose my trading decisions are licensed as data to a Registered Investment Advisor, which I am not.

    Respectfully Yours
    Dan Plettner
    Nov 15 01:47 PM | Likes Like |Link to Comment
  • Municipal Debt Funds: Are These Yields Unsustainable? [View article]
    As "das555" said, caution in aggregating all funds together is appropriate. The one of the funds Karl mentioned that interests me on either the long or short side as potentially inefficiently priced has data that is quite contrary to the author's implied conclusions. Of course, the names of all funds weren't even correct. Sadly, its hard for Seeking Alpha to really evaluate the quality of CEF content before publishing. More sadly, few experts display the tendency for calling out contributors on (de)merits of their "contributions".

    Respectfully Yours
    Dan Plettner
    Nov 14 12:12 PM | 1 Like Like |Link to Comment
  • Municipal Debt Funds: Are These Yields Unsustainable? [View article]
    Hammer

    Essentially, I observed whether the author’s conclusion was or was not viably constructed in my view. Lots of people who are very smart market people have not taken the time to really appreciate some of the nuances of Closed-End Funds. Closed-End Funds are underappreciated and underfollowed. In short, there may be inefficiencies to exploit when you are seeing relevant details others aren’t seeing. If you think this piece observed more (and not less) of the relevant information about this group than average market participants are mindful of, then it would seem you have something actionable…

    Don't take this for more than it is but I agree with the author’s simple observation that the style has been in vogue and gone up.

    But, the piece does not discuss “why” beyond broad taste for the asset class. There is far more to the story. To understand the upside and downside risks it’s important to know a lot more than what the author here put on his plate.

    Respectfully Yours,
    Dan Plettner
    Nov 13 03:25 PM | 1 Like Like |Link to Comment
  • Municipal Debt Funds: Are These Yields Unsustainable? [View article]
    Are the charts and seemingly implausible high yields data? Sure. Does the naked eye want to agree with you, Karl? Yes. But do some research. What your piece doesn’t do is look at the group and identify what has caused the upward move. If you don’t know why Muni CEFs went into favor, how can you evaluate whether the move is mature or otherwise.

    If you get into really evaluating the dynamics, you just may find that the naked eye doesn’t do an assessment of this group justice. You may find the rationality in the moves surprising, and not yet mature. Short term borrowing rates and more nominally attractive risk-free alternatives do not appear plausibly imminent as negative catalysts under current fiscal policy.

    You might consider to take a hard look at the whole group’s dynamics, then look at funds within the group individually. Poorly founded broad strokes rarely paint masterpieces.

    Personally I have an even stronger taste for other asset classes at present, but I think your bearish CEF munis call here is built on a very flimsy foundation.

    Respectfully Yours,
    Dan Plettner
    Nov 11 08:56 PM | 3 Likes Like |Link to Comment
  • Alerian MLP ETF Has Higher Fee Structure Than Hedge Funds [View article]
    Their claim may be a partial truth. What Ron has observed here is not an issue is not of the taxation of AMLPs distributions, it’s the fact that the C-Corporation is inefficient for MLP asset class allocations in a rising market. Ron Rowland has done a tremendous job of covering AMLP in my view. While I differ from Ron in regard to his substitute view of the ETN, he deserves a ton of credit to stand up and say what marketing materials don’t.

    Whether it’s the ETF or the ETNs, the MLP single security diversification vehicles are doing a great marketing job of highlighting the bits and pieces of what they do offer. However, they may be do a horrendous job of disclosing the extent of the inefficiencies in contrast to direct investment in MLP units. Sadly, Truth leaves room for omission.

    Respectfully Yours,
    Dan Plettner
    Nov 9 11:10 AM | 2 Likes Like |Link to Comment
  • Attractive Entry Points for Closed-End Funds FMO and ETJ [View article]
    3 Questions:

    1) Are ETJ and FMO really “one metric only” or haven't you essentially applied a qualitative screen on top of the quantitative screen for regression to the mean trading candidates.

    2) Have you read Ron Rowland’s observations about the C-Corporation Structure for Closed-End Fund investing vehicles, and if so does FMO survive your application of a qualitative screen?

    3) What does your portrayal of ETJ as an actionable regression to the mean candidate add to Seeking Alpha’s previously published investment view on ETJ?

    - Dan Plettner, a fellow SA contributor in the Closed-End Fund space
    Nov 9 10:58 AM | Likes Like |Link to Comment
  • Alerian MLP ETF Has Higher Fee Structure Than Hedge Funds [View article]
    Ron

    I got a chance to earlier "recommend" this article but was distracted and time-constrained so as to delay comment. Among those with large followings on Seeking Alpha, you not only speak eloquently, but habitually offer relevant messages. I applaud you.

    I share your observations on the C-Corporation structure with aggregated MLP investing vehicles. Shall you desire more data on similarly constrained C-Corporations holding MLP constituents where historical financial reporting allows for data you don't have to back into, contact me anytime. The data doesn't say anything different, rather backs up your stern perspective.

    Respectfully Yours,
    Dan Plettner
    Nov 8 01:33 PM | 2 Likes Like |Link to Comment
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