Yorkville Capital

 
Investment Process

Yorkville's core competency is fundamental analysis. We developed and employ a scientific approach to fundamental research and portfolio risk management. Our scientific approach is designed to enhance the probability all of our strategies will achieve their investment objectives more consistently across market cycles.

Yorkville is a learning organization. We have developed proprietary models and software that capture and allow us to build-on our pioneering experience of researching and investing in U.S. energy infrastructure from virtually the inception of the MLP asset class. These models harness our knowledge, ultimately benefiting investors in each and every strategy we manage.

Yorkville has been recognized by Morningstar, Barron's and other institutional databases as a top performing investment manager of MLPs. There may be some merit to our scientific approach.

 

Yorkville’s investment team has been investing through master limited partnerships (MLPs) since the early 1990s, near the inception of the asset class. Our team has one of the longest audited investment track records investing in MLPs. Over the years, we have researched and invested in every type of MLP. Our investment team’s body of knowledge is essential to idea generation.

Yorkville has used its twenty years of successfully researching and investing in U.S. energy infrastructure to develop a series of algorithms that rate partnerships based on a series of business fundamentals. These proprietary multi-factor models quantitatively screen the Yorkville MLP Universe Indices and identify partnerships with superior fundamentals.

Yorkville is a first and foremost a research driven investment shop. Yorkville’s core competency lies in the firm’s ability to conduct in-depth fundamental research on all of the companies in which we invest by gaining a CEO level understanding of the underlying businesses. By focusing exclusively on energy infrastructure and MLP investments, we are able to analyze the entire asset class on a fundamental level to determine what we believe to be are the best investments. Ultimately, we believe that this results in superior stock selection, enhancing returns over time.

Yorkville manages risk by not placing outsized bets on any given investment in our portfolio. We employ an equal weighted strategy for this purpose. Yorkville uses its proprietary risk management model to measure, monitor, and manage risk at the portfolio level across seven risk silos.

Sell decisions are driven by fundamentals. We developed proprietary models that monitor target prices of every investment in the portfolio and we exit positions as they become fairly valued. We proactively sell investments at the first indication that fundamentals may be deteriorating. Additionally, we rank portfolios according to our Fundamental Investment Score to help us identify the relative attractiveness of investments and maintain portfolio diversification when new positions are added.

http://yorkvillecapital.com/process.aspx