It's funny how much things can change in ten years. If you turn the clock back ten years, Energy Master Limited Partnerships or MLPs were one of the hottest and best-performing asset classes at the time. MLPs had a very high Sharpe ratio and terrific risk-adjusted performance.
Now, move the clock forward ten years, and you will find that MLPs have been one of the worst-performing asset classes over the last five years. But a contrarian investor may believe that good performance going forward could follow the extreme underperformance we have seen.
Valuation has gone