Investment Philosophy

Center Coast seeks to invest in high-quality energy infrastructure assets that are:

1. critical to long-term U.S. oil and gas infrastructure needs;
2. positioned to generate stable, durable, and growing cash flows across various commodity cycles, and;
3. run by high-quality management teams.

 

Investment decisions are made at the intersection of strong fundamentals and attractive valuation.

Identification of CCC Universe

Proprietary screening system identifies CCC investment universe

Midstream Universe 125+ Entities

CCC Proprietary Multi-Factor Model

Commodity Price Exposure

Weather Sensitivity

Demand Elasticity

Barriers to Entry

Alpha Generating Security Selection

Due diligence and operational knowledge & experience drive investment decisions

Alpha Generating Security Selection

CCC Proprietary Multi-Factor Model

venn diagram

Strong Fundamentals

Attractive Valuation

Portfolio Construction

Portfolio construction based on weighting allocations

Overweight

Tier One
Tier Two

Equal weight

Tier Three

Underweight

Tier Four
Tier Five
Tier Six - Funds Only

Risk Management & Execution

Strict investment approval process, trading compliance, and general risk management overseen by Investment Committee

Execution & Rebalancing

Risk Management

Trading Discipline

  • Multiple counterparties
    Close relationships with executing brokers

  • Best execution
    Focusing on price movement and volume

  • Communication
    Constant communication with portfolio managers and brokers

Rebalancing Discipline

  • Maintain a position size target model portfolio

  • Rebalance to portfolio quarterly or during model portfolio update

  • Rebalance if a portfolio position deviates over 15% out of balance

  • Capital application approval process at the investment committee level
  • Statistical summary utilizing volatility, alpha, beta, concentration analysis, up/down capture
  • Monitor trading volumes
  • Annual compliance review to identify and solve risk issues

Execution & Rebalancing

Trading Discipline

  • Multiple counterparties
    Close relationships with executing brokers

  • Best execution
    Focusing on price movement and volume

  • Communication
    Constant communication with portfolio managers and brokers

Rebalancing Discipline

  • Maintain a position size target model portfolio

  • Rebalance to portfolio quarterly or during model portfolio update

  • Rebalance if a portfolio position deviates over 15% out of balance

Risk Management

  • Capital application approval process at the investment committee level
  • Statistical summary utilizing volatility, alpha, beta, concentration analysis, up/down capture
  • Monitor trading volumes
  • Annual compliance review to identify and solve risk issues