- Infrastructure Capital Advisors, LLC (ICA) is an SEC-registered investment advisor that manages exchange traded funds (ETFs) and a series of hedge funds. The firm was formed in 2012 and is based in New York City.
ICA seeks total-return opportunities driven by catalysts, largely in key infrastructure sectors. These sectors include energy, real estate, transportation, industrials and utilities. It often identifies opportunities in entities that are not taxed at the entity level, such as master limited partnerships ("MLPs") and real estate investment trusts ("REITs"). It also looks for opportunities in credit and related securities, such as preferred stocks.
Current income is a primary objective in most, but not all, of ICA's investing activities. Consequently, the focus is generally on companies that generate and distribute substantial streams of free cash flow. This approach is based on the belief that tangible assets that produce free cash flow have intrinsic values that are unlikely to deteriorate over time.
At InfraCap, we believe long-term investing in real assets can generate superior risk-adjusted returns over a full market cycle. We like to make cash distributions from our investment portfolios and give our investors the option of using the cash for necessary expenses or to reinvest in our funds.
We offer both fixed income and equity income funds. Our aim is to offer funds that can meet the needs of investors with different levels of risk tolerance. Our actively managed funds may use modest leverage and options strategies to enhance income. Our index-based fund is passively managed and holds an unlevered basket of securities.
We prefer to focus on inefficiently priced asset classes, such as preferred stocks and MLPs. Stock selection in our active funds is driven by proprietary quantitative models focused on credit quality and market valuations. Our index-based fund provides focused exposure to a segment of the preferred stock asset class.