FMO - Six pipeline funds offer cheap way to play energy rebound - Barron's

The closed-end funds that focus on oil and gas pipeline companies generally trade at discounts to their net asset values of 20% or more - the widest in the U.S. closed-end fund market, where the average discount is less than 10% - Andrew Bary writes in this weekend's edition of Barron's."You're buying the funds at a discount to an asset class that is already discounted," says Rob Thummel, a portfolio manager at Tortoise Energy Infrastructure.Kayne Anderson Energy Infrastructure (KYN), the largest fund in the sector with $690M in net assets, is down 71% YTD and now trades at ~$4.Other major MLP funds include Tortoise (TYG), ClearBridge MLP & Midstream (CEM) and First Trust MLP & Energy Income (FEI)."The biggest change in the industry has been a focus on free cash flow and cuts in capital expenditures. These companies can generate massive amounts of cash flow," says Thummel, who likes industry

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Six pipeline funds offer cheap way to play energy rebound - Barron's