Why Midstream Energy Companies Have an Advantage
Well, UMI, what we're doing is a mid-stream fund. We are focused on those midstream companies, and the nice thing in that space is, you know, your upstream, you have—the term doesn't get thrown around quite as much anymore—wildcatting. You have boom and bust cycles.
The downstream space, you've got margins from refineries, things like that. In the midstream space, these companies are focused on developing long-term contracts which produce income.
Our portfolio management team on that fund—it's an active fund. They are looking for the best companies in the space, looking at company fundamentals, and trying to pick those companies that are likely to give you the better total returns over time and consistent income.
That's really the differentiator with UMI, is picking good companies and that focus on that mid-stream area where hopefully the income is more consistent, and you have good solid companies to choose from with strong fundamentals.
