Mr. Swank: We are a money manager with approximately 1 billion in assets under management that focuses on publicly traded energy infrastructure companies, or MLPs. We have several types of investment strategies focusing in MLPs that range from active to passive management. We have hedge funds, separately managed accounts, a publicly traded closed-end fund and a publicly traded MLP benchmark index called the Cushing 30 MLP Index. Most recently, Credit Suisse launched an exchange-traded note, ETN, based on the Cushing 30 MLP Index, which trades on the NYSE under the ticker MLPN. The common thread throughout these vehicles is our expertise and focus on the publicly traded MLP asset class.
TWST: What is the difference between the hedge fund and the other investment options you offer?
Mr. Swank: The hedge fund product is more of an institutional product, with a total-return focus. The hedge funds focus on a total-return strategy. They take different exposure levels to MLPs and of course implement a hedging strategy when deemed appropriate. Over a cycle, it should do better than a long-only strategy. Publicly traded, closed-end MLP funds tend to be more yield oriented and always have some level of leverage. Although our closed-end fund focuses on yield, we also look at growth, so it leans more towards a total-return strategy than others. The Credit Suisse ETN is based on the Cushing 30 MLP Index and designed to provide investors with similar returns to the index.
Tickers included in this excerpt: CHK, DVN, EPD, ETP, MLPN, MLPX, XTO
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