Firm Overview
March 31, 2015
CastleArk Philosophy - The Importance of Distribution Growth
CastleArk Management, LLC is an
employee-owned, registered investment adviser founded in 1999.
Based in Chicago, CastleArk
currently has five major product
offerings: Large Cap Growth, SMID
Cap Growth, Small Company
Growth, Global Energy, and Master
Limited Partnerships.
Portfolio Managers
• Jerome A. Castellini
President & Chief Investment Officer
Years of Experience:
36
Growth in distributions drives superior returns for MLPs, not yield. The benefits of an MLP
portfolio focused on growth over yield include the following:
• Increasing value supported by higher dividends,
• Less volatility and greater downside protection,
• Better inflation protection.
The CastleArk Advantage
• Proven institutional money manager with a long-term record of successful growth
investing.
• Over 50 combined years of investing experience within the Energy sector.
• Since inception, CastleArk ranks among the top MLP managers on both an absolute
and risk-adjusted basis.
• Joseph Hagan, CFA, CPA
Years of Experience:
10
Gross Returns vs. MLP Style Group* for Periods Ended March 31, 2015
25.0
Objective
20.0
To maximize total return by investing
in high-quality MLPs with peerleading distribution growth.
10.0
March 31, 2015
Alerian
MLP
Index
# of Holdings
35
50
Median Market
Capitalization
$ 8.6B
$ 4.0B
Average Market
Capitalization
$ 24.1B
$ 21.0B
A (26)
B (93)
B (94)
A (38)
5.0
Portfolio Characteristics
CastleArk
MLP
A (30)
15.0
0.0
B (91)
(5.0)
Last Year
Last 3 Years
Since Inception 1/1/11
Annualized
CastleArk MLP
Alerian MLP Index
A
B
6.19
-2.48
18.22
9.21
19.00
10.24
Up-Market / Down-Market Capture vs. MLP Style Group (Since Inception as of March 31, 2015)
110%
Top Ten Holdings (% of Portfolio)
Alerian MLP Index
100%
Enterprise Products Partners LP
11.8%
Magellan Midstream Partners LP
8.3%
Energy Transfer Partners LP
6.2%
Plains All American Pipeline LP
5.4%
Down Market Capture
MLP FACT SHEET
Master Limited Partnership
(MLP)
90%
80%
MLP Style Group
70%
Kinder Morgan Inc.
5.2%
MarkWest Energy Partners LP
4.5%
Plains GP Holdings
3.6%
Western Gas Equity Partners LP
3.6%
Energy Transfer Equity LP
3.5%
40%
Sunoco Logistics Partners LP
3.3%
30%
90%
60%
CastleArk:MLP
50%
100%
110%
120%
130%
140%
150%
160%
Up Market Capture
* MLP Style: Major Consulting Database
Benchmark: Alerian MLP Index
For Institutional Investors Only
Page 1
Investment Terms &
Index Definitions
March 31, 2015
Risk-Adjusted Return Statistics vs. MLP Style Group* (Since Inception as of March 31, 2015)
12.0
Alpha measures a fund’s risk-adjusted
performance
and
represents
the
difference between a fund’s actual
performance
and
its
expected
performance, given its level of risk as
measured by beta.
10.0
A (26)
8.0
6.0
Information Ratio measures a fund’s
risk-adjusted
performance
and
represents the ratio of the fund’s active
return, defined as the difference between
the return of the fund and the return of
the selected benchmark index, divided by
the tracking error, defined as the
standard deviation of the active return.
4.0
A (37)
2.0
0.0
(2.0)
Alpha
Up-Market Capture measures how well
an investment manager performed
relative to an index during periods when
that index has risen. Values above 100
indicate outperformance of the index in
up-markets. Values below 100 indicate
underperformance in up-markets.
CastleArk MLP
A
Information Ratio
8.80
1.94
* MLP Style: Major Consulting Database
-5%
Large
Diversified
Coal
Tankers
Other
4.4%
LNG
Exports
0.0%
4.4%
0.0%
2.6%
1.5%
2.6%
0.0%
3.1%
0.0%
4.0%
Exploration
Fuel
Gathering & Liquids Natural Gas Propane &
&
Distribution Processing Transport & Pipelines
Gas
Production
Storage
Storage
CastleArk MLP
Contact
3.3%
2.3%
1.4%
5%
Master Limited Partnership (MLP) is a
partnership that is publicly traded. It
combines the tax benefits of a limited
partnership with the liquidity of publiclytraded securities.
0.9%
0.0%
15%
0.4%
Alerian MLP Index is a float-adjusted,
capitalization-weighted composite of the
50 most prominent MLPs.
2.2%
25%
21.9%
19.2%
35%
19.5%
45%
22.3%
Down-Market Capture measures how
well and investment manager performed
relative to an index during periods when
that index has fallen. Values below 100
indicate outperformance of the index in
down-markets. Values above 100
indicate underperformance in downmarkets.
44.2%
Sector Weighting as of March 31, 2015
39.9%
MLP FACT SHEET
Master Limited Partnership
(MLP)
Cash
Alerian MLP Index
Total Return as of March 31, 2015 (Net of Fees)
CastleArk Management, LLC
Annualized
1 North Wacker Drive, Suite 3950
1Q2015
Chicago, IL 60606
Phone: 312.456.9682
For inquiries: [email protected]
1 Year
2 Year
3 Year
4 Year
Since
Inception*
CastleArk MLP (NET)
-4.76%
5.22%
12.75%
17.16%
17.60%
17.95%
Alerian MLP Index
-5.22%
-2.48%
2.88%
9.21%
9.30%
10.24%
*Inception Date: 01/01/11
Past performance is not indicative of future results
CastleArk MLP Composite Annual Disclosure Presentation
3- year Annualized
Standard Deviation
Annual Performance Results
Composite Assets
Year End
Total
Firm
Assets
(millions)
US Dollars
(millions)
Number of
Accounts
Gross
2015*
2014
2013
2012
2011
4,256
4,333
3,876
3,060
2,825
160
143
115
70
64
Five or Fewer
Five or Fewer
Five or Fewer
Five or Fewer
Five or Fewer
(4.54%)
19.62%
36.64%
10.23%
21.72%
Composite
Net
(4.76%)
18.57%
35.43%
9.25%
20.71%
Alerian MLP
Index
(5.22%)
4.81%
27.75%
4.92%
14.02%
Composite
Dispersion
*
0.06
0.02
N/A
N/A
Composite
Alerian MLP
Index
*
12.71%
12.44%
*
13.54%
13.43%
*Results shown for the year 2015 represents partial period performance from December 31, 2014 through March 31, 2015
N.A. - Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year.
CastleArk MLP Composite consists of fully discretionary accounts that invest in the energy master limited partnership (MLPs) whose businesses focus on oil and natural gas development. For comparison purposes the composite is measured against the Alerian MLP
Index. The minimum account size for this composite is $5 million.
CastleArk Management, L.L.C. has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®).
CastleArk Management, L.L.C. is registered as an investment advisor with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The firm maintains a complete list and description of composites, which is available upon request.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results.
The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance was calculated using actual management fees. Policies for valuing portfolios,
calculating performance, and preparing compliant presentations are available upon request. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. The three-year annualized standard
deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period.
The MLP Composite was created January 1, 2011.
Investment management fees for the accounts in the composite range between 1.00% and 1.25%. Actual investment advisory fees incurred by clients may vary
Use of Performance Data:
Past performance should not be construed as a guarantee of future performance. The information provided in this presentation should not be construed as a recommendation to purchase or sell any particular security or an
assurance that any particular security held in a portfolio will remain in the portfolio or that a previously held security will not be repurchased. Securities discussed in this presentation may not represent a portfolio's entire
holdings. It should not be assumed that any of the security transactions or holdings discussed have been or will prove to be profitable or that future investment decisions will be profitable or will equal or exceed the
investment performance of the securities discussed.
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