New fund offerings from The Boston Company Asset Management (TBCAM), a Boston-based BNY Mellon boutique that invests in active equity, offer institutional investors exposure to an energy infrastructure strategy that utilizes master limited partnerships (MLPs) and an event-driven absolute return strategy.
To manage these offerings, TBCAM has brought on a new team that founded and managed Pine Cobble Capital LLC along with the firm’s existing strategies and assets.
According to TBCAM, the energy infrastructure strategy invests primarily in companies that own and operate “midstream assets, such as pipelines, terminals and processing facilities, which have long, useful lives and offer attractive rates of return.” The strategy focuses on generating total returns through a combination of current yield, distribution growth, and the identification of catalysts that could affect cash flow and market perception. This strategy invests in MLPs, corporations that control MLPs or midstream assets, and other companies influenced by developments in U.S. energy infrastructure.
The event-driven strategy invests in a concentrated number of long and short positions with consideration of potential value drivers such as financial or corporate structure changes, operational restructurings, mergers and acquisitions or special situations. This strategy is focused primarily on U.S. small- and mid-capitalization equities and also opportunistically invests across the capital structure in corporate credit securities, according to TCBAM.
Bart Grenier, CEO and chief investment officer (CIO) for TBCAM, says the launch of these two strategies “significantly strengthens our alternative investment capabilities at a time when institutional investors are increasingly looking for new investment options.” He adds that the energy infrastructure sector presents a compelling opportunity for a catalyst-driven, total-return approach due to the combination of attractive current yield, strong distribution growth potential and a dynamic industry environment.
The two strategies are managed by Robert Nicholson and Zev Nijensohn, who joined TBCAM in November as senior managing directors and senior portfolio managers from Pine Cobble Capital LLC, which they co-founded in 2007. The team will continue to take the same approach it utilized at Pine Cobble and has transitioned the strategies and assets it managed to TBCAM.
More information can be found at www.bnymellon.com.