BofA Merrill sees four battered MLPs on the mend soon

• A new BofA Merrill Lynch research report makes the case that this January’s returns for MLPs could be better than usual after the group's recent selling and underperformance this year.
• The analysts say sector laggards have a snapback ability in January because of tax-loss selling, no buyers committing new funds at the end of the year in an ability to avoid a K-1 being generated, and buyers stepping in before the MLPs go ex-distribution in February; they add that laggards from the prior two-month periods typically enjoy a bigger January than full-year laggards.
• The four MLPs rated Buy that have severely underperformed this month and last which Merrill says could show big gains in January are AMID, DKL, NGLS, CEQP.