Barron’s: Pipelines, Infrastructure to Shine in Downturn
Barron’s published an interesting interview with Jay Rosenberg, manager of the First American Global Infrastructure fund. According to Rosenberg, pipelines and infrastructure related companies are attractive in the current economic environment because they offer stable cash flows. Specifically, Rosenberg says:
…we are generally much more focused on those companies that transport petroleum — both crude refined products — and natural gas. But they do so in a way that is very contractual in nature and where their earnings don’t fluctuate very much based on the volumes that they are shipping. The company that best typifies what I’m talking about would be Enbridge (ENB), in particular because of the contractual nature of its gas load. Another company that we like in is Kinder Morgan …whose institutional shares (KMR) we own. Kinder Morgan has a fantastic portfolio of pipeline assets but also has some of the best unique storage assets in the US…
Related Links:
Barron’s Article (subscription may be required)
You must be logged in to post a comment.