Second Article

Don't Fear Commodities

By Elliott H. Gue
Wednesday, November 05, 2008

The prices of key energy-related commodities have fallen sharply since mid-summer, though both oil and natural gas have bounced off their lows in recent weeks.

But despite that weakness, recent reports from our favorite energy-focused publicly traded partnerships (PTP) have been solid. As noted in last week’s Market Update, nearly every single one of the PTPs recommended in The Partnership Portfolio has boosted distributions paid to investors at least once over the past 12 months, and several have already declared increases in their payout for this quarter. And every one has equivalent or better distribution coverage than was the case a year ago.

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PTP Pointers

Tax Simplification

By Benjamin Shepherd
Wednesday, April 02, 2008

A publicly traded partnership (PTP) can be one of the best investments you can make from a tax standpoint, but putting your return together can be difficult because of the K-1 form, with which many investors are unfamiliar. more

Passing Through

Energy Shakeout

By Elliott H. Gue
Tuesday, July 29, 2008

Crude oil prices have fallen nearly $30 per barrel and natural gas prices are off $3.50 per million British thermal units (MMBtu) since the beginning of July. This sudden, dramatic correction has sent shockwaves through the energy patch and prompted some unusual volatility in our favorite energy-related publicly traded partnerships (PTPs). more

Feature Article

Sustained or Overruled

By Neil J. George
Wednesday, November 05, 2008

We adhere to four basic rules to identify the best partnerships for you to own and constantly monitor and reevaluate our Portfolio holdings based on this rubric. Any recommendation that fails this litmus test is jettisoned.

The first rule is quite simple: The partnership must pay you. A reliable and growing stream of cash distributions distinguishes successful investments from the also-rans and indicates that the partnership continues to expand profits. This is obviously preferable to common stock companies that offer only an IOU for returns in the hopes that the market might bid up share prices.

Accordingly, we focus on partnerships that have a sustainable business; that is, the underlying assets must continue to produce revenues and profits through a variety of economic environments.

Third, the partnership in question must be financially sound, with enough cash and liquid assets to cover both expected and unexpected outlays. This involves ensuring that borrowing expenses are manageable and the company’s access to credit remains unfettered; even the best businesses can find themselves in serious trouble if the cash runs out or its well of credit runs dry.

Market risk is the final dimension that we examine when selecting and vetting our portfolio holdings. Partnerships are subject to the whims of the marketplace just like common stocks; although strong fundamentals are usually adequate security, share prices can and do come under duress. more