Key Takeaways
- • Infrastructure Capital Advisors manages around USD4 billion and offers three European ETFs: SPYC (active S&P 500 option-income), NUKZ (nuclear renaissance), and PFFI (preferred securities income).
- • CEO and CIO Jay Hatfield, who founded the firm in 2012, says the firm is applying a hedge fund research approach to ETFs, with analysts covering companies and building their own estimates.
- • The firm's flagship US preferred strategy has over USD2 billion in assets and a five-star Morningstar rating, per the article.
- • The InfraCap MLP ETF (NYSE: AMZA) was described by Hatfield as the first active MLP fund in the US with an options strategy.
- • The firm plans a suite of four new ETFs over the next six months, likely continuing the income theme and including a bond fund and a pipeline fund.
Summary
Infrastructure Capital Advisors, founded by Jay Hatfield in 2012 shortly after he took NGL Energy Partners (NYSE: NGL) public in 2011, is built around income generation and infrastructure-focused portfolio management. According to Hatfield, the strategy is designed to let investors nearing retirement build portfolios where a substantial share of returns comes from income, reducing the need to sell securities during downturns. The firm still runs a small hedge fund, but its product line is dominated by energy and real-asset strategies, often using options to generate income.
The firm manages around USD4 billion and has three European-listed ETFs. SPYC is a newly launched active S&P 500 option-income ETF combining stock selection with a flexible covered-call strategy. NUKZ targets the nuclear renaissance, including utilities, uranium, nuclear infrastructure and advanced reactors. PFFI is an actively managed preferred securities income strategy focused almost exclusively on asset-intensive infrastructure businesses. The firm's US flagship preferred strategy has over USD2 billion in assets and a five-star Morningstar rating. Hatfield said the European relationship with white-label provider HANetf began with a pipeline fund discussion and shifted to a preferred stock fund, and he described the European experience as positive, with good volumes on PFFI.
Hatfield argues that a hedge fund approach is an advantage in ETF management. He said hedge funds' in-depth research allows them to go long or short, and that Infrastructure Capital applies similar analyst-driven research, with analysts building their own estimates and engaging directly with companies. He also said the flagship InfraCap MLP ETF (AMZA), described as the first active MLP fund in the US with an options strategy, has almost doubled the index since its launch eight years ago, and that performance drives inflows.
Hatfield also highlighted operational challenges. He said US ETFs without substantial support can fail to trade, and that the firm has been unable to buy UCITS ETFs to support them because most US brokerage firms lack good access. The firm plans four new ETFs over the next six months, likely continuing the income theme and including a bond fund and a pipeline fund. Hatfield said the firm aims to build a long-term business focused on funds investors will hold, rather than leveraged products.
The firm manages around USD4 billion and has three European-listed ETFs. SPYC is a newly launched active S&P 500 option-income ETF combining stock selection with a flexible covered-call strategy. NUKZ targets the nuclear renaissance, including utilities, uranium, nuclear infrastructure and advanced reactors. PFFI is an actively managed preferred securities income strategy focused almost exclusively on asset-intensive infrastructure businesses. The firm's US flagship preferred strategy has over USD2 billion in assets and a five-star Morningstar rating. Hatfield said the European relationship with white-label provider HANetf began with a pipeline fund discussion and shifted to a preferred stock fund, and he described the European experience as positive, with good volumes on PFFI.
Hatfield argues that a hedge fund approach is an advantage in ETF management. He said hedge funds' in-depth research allows them to go long or short, and that Infrastructure Capital applies similar analyst-driven research, with analysts building their own estimates and engaging directly with companies. He also said the flagship InfraCap MLP ETF (AMZA), described as the first active MLP fund in the US with an options strategy, has almost doubled the index since its launch eight years ago, and that performance drives inflows.
Hatfield also highlighted operational challenges. He said US ETFs without substantial support can fail to trade, and that the firm has been unable to buy UCITS ETFs to support them because most US brokerage firms lack good access. The firm plans four new ETFs over the next six months, likely continuing the income theme and including a bond fund and a pipeline fund. Hatfield said the firm aims to build a long-term business focused on funds investors will hold, rather than leveraged products.
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