I've been looking at some of the most discounted CEFs at: https://www.cefchannel.com/screens/discount-to-nav/ Several of the most performing ones are CEFs that seem to hold a ton of energy MLPs. And they all seem to perform HORRIBLE. Like, some losing money over more than a decade, or something like that. Very, very bad performance. Now, I have no checked down every alley to see if these were just anomalies, so don't burn me too bad if they are, but if energy MLPs perform as bad as they seem to do from what I have seen, why is that? Oil prices are sky high now, so its not like I am catching them in some huge downturn. Thanks!
energy MLPs are not performing poorly. they can go up / down / sideways or whatever. it is the investor who is performing poorly like DOG SHIAT. The market is always correct. Investors are performing poorly because they can only press BUY button first. spend more time doing Intermarket analysis. it works and it doesn't work. Anyway, let the professional writers answer your questions. and we just focus on trading.
I could be wrong, but aren't MLPs very similar to REIT structures? Large payout that is mostly taxable at the unit-holder's end? Also, that leaves them with very little lee-way to expand because most profits go to the share-holders. Basically they can dilute shares and try to raise capital that way...for expansion.