Liberty Street Takes Wraps Off of Energy Fund

January 13, 2011 ( – Liberty Street Advisors has launched the Center Coast MLP Focus Fund, an open-end mutual fund which will invest in midstream energy infrastructure master limited partnerships (MLPs).

A news release said the fund’s sub-advisor is Center Coast Capital Advisors, a Houston-based investment adviser, whose founder and CEO is Dan Tutcher.

MLPs, represented by the Wells Fargo Securities MLP Index, have provided one of the best risk adjusted rate of returns of any asset class over the past decade as of December 31, 2010 as compared to such Indices as the S&P 500, MSCI EAFE, FTSE NAREIT, and Barclays Capital US Corp High Yield Total Return, according to the announcement.

In addition to Tutcher, the fund will be managed by Center Coast co-founders Steven Sansom and Darrell Horn, as well as senior portfolio manager Robert Chisholm.. Chisholm, an MLP merger and acquisition (M&A) specialist, has worked with. Tutcher for the past nine years. He previously worked at Enbridge Energy Partners as Senior Project Analyst and at Koch Industries, Inc. where he held various positions in the company’s capital market, hydrocarbon, and midstream groups.

Chisholm also worked in Morgan Keegan’s Energy Investment Banking Division. Sansom and Horn worked for Goldman Sachs’ Investment Management Division and created Green Square Capital, in 2001, before co-founding Center Coast Capital along with Tutcher in 2007.

Direct investments in MLPs have historically created onerous and complex tax obligations, as investors would receive K-1s and, in some cases, State and UBTI tax filings for each MLP owned, the news release said. Investors in the Center Coast MLP Focus Fund will receive a single IRS Form 1099. The fund will also intend to provide daily liquidity and will be available in A, C, and Institutional share classes.

The Center Coast MLP Focus Fund intends to invest in a focused portfolio of approximately 15 to 20 high quality MLP common units and equity securities of MLP affiliates, mostly involved in midstream energy refining, storing, and transportation. The fund is currently available for purchase through Fidelity and Schwab.