Concerned about your investment losses in DCP Midstream Partners LP (DCP)?
Have you suffered losses in DCP Midstream Partners LP? If so, the securities attorneys of The White Law Group may be able to help you recover those losses from the brokerage firm that recommended the investment.
DCP Midstream Partners, LP (DCP), based in Denver, Colorado, is a master limited partnership that reportedly provides processing, transportation, fractionation and storage services to producers and consumers of natural gas and NGLs. The Partnership operates in three business segments: Natural Gas Services, NGL Logistics and Wholesale Propane Logistics.
In the United States, a master limited partnership (MLP) is a limited partnership that is publicly traded on an exchange qualifying under Section 7704 of the Internal Revenue Code. It combines the tax benefits of a limited partnership with the liquidity of publicly traded securities.
In the last few years, MLPs have become a popular way to structure energy/oil and gas investments. According to Morningstar, from the start of 2010 to the end of 2014, a net $44 billion flowed into MLP mutual funds and exchange-traded funds.
According to reports, since 2009, MLPs have raised more than $100 billion from initial public offerings and follow-on stock sales. Investors appear to have been lured in to these products by the companies’ assurances of steady payout increases and tax advantages.
Most MLPs earn money by charging oil-and-gas producers to transport or store their products. MLPs have also been popular in recent years because they have provided relatively high returns to otherwise income-starved investors.
Unfortunately for investors, most oil and gas MLPs are down substantially in the last year. According to Yahoo Finance, in the past year, DCP Midstream’s share price has reportedly declined 81%.
If your financial advisor over-concentrated your portfolio in MLPs, you may have a viable claim to recover your losses. Financial advisors are required to make suitable investment recommendations, accounting for your age, income, net worth, investment experience, and investment objectives.
Diversification is the key to reducing risk. Over-concentrated exposure to any sector or investment, but particularly volatile industries like oil and gas which are so dependent on global demand and supply), can be unsuitable for many investors.
Securities Investigation
The White Law Group is investigating the liability that brokerage firms may have for making unsuitable recommendations of MLPs such as DCP Midstream Partners LP.
If you lost money investing in the DCP Midstream Partners LP please call the securities arbitration attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on the firm and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.
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