Yorkville Capital Launches MLP Hedge Fund With Large Institutional Seeding
Innovative Hedge Fund Strategy Addresses Institutional Investors' MLP Concerns
NEW YORK, NY -- (Marketwired) -- 12/15/15 -- Yorkville Capital Management, a research-driven investment manager of master limited partnerships (MLPs), today announced the launch of a long-short MLP hedge strategy. The strategy addresses the major road-blocks keeping institutional investors from investing in the MLP asset class specifically price volatility and tax complexities.
The primary investment objective of the Yorkville MLP Alpha Hedge Fund is to protect against major MLP asset class drawdowns. The Fund's risk profile is dynamically managed using Yorkville's proprietary Risk Exposure Model ("REM"). The long portion of the hedged strategy will be run pari-passu to Yorkville's award winning MLP Core Income Strategy. The fundamentally optimized short book is designed to deliver alpha in up markets and provide smart beta exposure during asset class corrections. The Fund's innovative swap structure eliminates MLP K-1s, UBTI, and U.S. filing requirements for foreign investors.
"We created our long-short strategy to address the main reason institutional investors avoid the MLP asset class, primarily price volatility. Significant drawdowns are untenable for institutional investors," said Darren Schuringa, CEO of Yorkville Capital. "Furthermore, the tax complexities of MLPs have kept institutional investors at bay. Our innovative swap-based fund structure simplifies taxes. The market has been waiting for an investment vehicle that encourages institutional and foreign investment in U.S. energy infrastructure. The seeding of our new fund is indicative of growing institutional and foreign interest in a heavily oversold, yet fundamentally sound asset class."
About Yorkville Capital Management, LLC
Yorkville Capital Management, LLC is a Registered Investment Advisor dedicated to investing in master limited partnerships (MLPs). Yorkville's investment team is comprised of pioneers in researching and investing in MLPs. As of the first quarter 2015, the Yorkville MLP Core Income Strategy was ranked the fourth best performing equity strategy in the United States over the past five years by Pensions & Investments. The Yorkville team has been successfully investing in U.S. energy infrastructure through MLPs since the early 1990s - virtually the inception of the asset class. Yorkville's management team has over 60 years of combined experience in the MLP market and is led by Mr. Darren Schuringa. To learn more, visit: www.yorkvillecapital.com.
In addition to its separate accounts, Yorkville Capital Management currently acts as the investment sub-advisor for the actively-managed James Alpha Yorkville MLP Fund (NASDAQ: JMLPX) (NASDAQ: JAMLX) (NASDAQ: MLPCX) and is the index provider for the RBC Yorkville MLP Distribution Growth Leaders ETN (NYSE: YGRO).
Contact:
Yorkville Capital Management, LLCPhone: (212) 755-1970Toll Free: (877) 317-8128Email: [email protected]
Source: Yorkville Capital Management
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