GlobalTrekker

Master Limited Partnerships for Your Portfolio: Three Key Questions and Answers

CEF MLPs are not generally a good investment, IMHO, and you pay a premium above NAV for the tax simplification. They also have onerous management fees on top of the management fees that each underlying MLP charges (e.g., Symbol/Premium/mgmt.fee: FMO/+23.00%/3.6%; FEN/+11.40%/4.8%; KYN/+11.71%/5.9%; SRV/+16.50%/7.7%). They also have equally egregious incentive schemes for their owners. There is a reason you cannot borrow any shares to short these fellows. Full disclosure: I short them every chance I get.