VLO - Magellan: Top-Tier MLP Attractive Risk-Adjusted Yield And The Dangers Of Indexing
Source: Company website
We all know happened to crude oil prices in 2014 and the resulting bankruptcy of a slew of master limited partnerships ("MLPs"), service providers, and upstream oriented energy companies. To start, let's put Magellan Midstream Partners (MMP), the focus of this article, up against the popular Alerian MLP Index (AMLP) and see how it performed.
Source: Yahoo Finance and WER
The market had significantly higher confidence in Magellan than its peer group, as the above chart demonstrates. Even more impressive is the fact that Magellan is one of