Masters in Wealth Destruction: Pipeline Partnerships Shred Cash
- ETF tracking MLPs has absorbed $574 million since November
- Oil mired in a 66 percent slide since mid-2014 on supply glut
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Hundreds of millions of dollars has poured into master limited partnerships in the last month. Very little of it is coming back out.
Even with this week’s mini-rally in the securities, an exchange-traded fund tracking the Alerian MLP Infrastructure Index has plunged 22 percent since the start of November while simultaneously sucking in more than half a billion dollars of inflows. In other words, the security has received more money from investors than any time in almost four years while the underlying index is in the midst of its second-worst monthly plunge since 2008.