Planet’s Best-Performing Fund Manager Sees U.S. Pipeline Growth

Kevin McCarthy, the world’s best- performing energy fund manager in the past year, stared at the tangle of tax-exempt partnerships and corporate parents that drive the U.S. oil and gas pipeline business and kept his cool.

According to the Bloomberg report That was in 2010, when the Kayne Anderson Capital Partners LP manager in Houston said he found a way to profit from the mess: He realized the most undervalued of the bunch were the companies managing the partnerships, the so-called general partners, especially since they were positioned to earn escalating shares of cash flow as pipeline assets expanded.

McCarthy’s Midstream/Energy Fund Inc. (KMF) made 32 percent in the last 12 months, the best return of 259 energy funds with more than $100 million worldwide, data compiled by Bloomberg show. His top investments are general partners such as Williams Cos. (WMB) and Kinder Morgan Inc. (KMI), according to Sept. 30 data. The industry has room to increase profit in 2013, as the drilling boom in U.S. shale fields creates a need for more pipelines, processing plants and compressor stations, McCarthy said…

Read all about it at http://www.bloomberg.com/news/2012-12-05/best-performing-fund-manager-sees-u-s-pipeline-growth.html