< The 2014 All-America Research TeamMichael Blum & teamWells Fargo SecuritiesFirst-Place Appearances: 0
Total Appearances: 4
Team Debut: 2009In third place is Wells Fargo Securities’ squad of six researchers under the direction of Michael Blum, who captured the same position in 2013. Beginning this year, the sector reflects a group-based approach to sell-side reporting on Master Limited Partnerships. “When I have a question about MLPs, Michael Blum and team are my first call on the Street,” declares one money manager. “Their knowledge of the industry, breadth of coverage and insight into what is driving MLP unit performance is unparalleled.” The analysts are upbeat on the sector — thanks to stable fundamentals, low interest rates and relatively strong commodities prices — and believe that the recent spate of mergers and acquisitions could drive near-term performance. They favor general partners that offer elevated dividend-to-distribution growth rates and can benefit disproportionately when their underlying MLPs engage in M&A transactions. On this theme they prefer Dallas-based Energy Transfer Equity and Tulsa, Oklahoma’s Williams Cos. Regarding individual MLPs, Blum and his colleagues are touting Western Refining Logistics of El Paso, Texas. Annual distributions are projected to expand by 15 percent for the next several years, Blum explains, and the company is well positioned in the West Texas part of the Delaware Basin, “a growing oil play that should present future organic investment opportunities as volumes ramp.”
RUNNER(S)-UP
Gabriel Moreen & team
Bank of America Merrill Lynch