MLPs have performed somewhat worse than the sector as a whole, but the high dividends have allowed investors to make back much of their losses an investor in the Alerian MLP Index tracking fund (AMLP) would be down only about 23% over the same period. While an investment in the energy sector, as represented by the XLE, would have been a bumpy ride over this time period, after reinvesting dividends it would have been essentially flat, up 0.3%. Given the nature of its mandate in energy investments, one would have expected NDP to generally track the ups and downs of both the broad energy index (as represented by the S&P Energy Select Sector Fund, ticker XLE) as well as the Alerian MLP Index (as represented by the Alerian MLP ETF, ticker AMLP), between its inception on and the market close on. Were the Board to pursue this shareholder-friendly strategy, as of the writing of this letter, shareholders would see immediate gains of approximately 30%. Instead of pursuing this merger, we urge the Board to convert to an open-end fund or liquidate the assets, which we believe would provide substantial value realization to shareholders, by eliminating the Fund’s deep discount to its net asset value (“NAV”). In our view, management’s inability to create value for shareholders has been clearly demonstrated over the past seven years, and we view this proposed merger as a last-ditch effort to buy more time to run a risky strategy that has dramatically underperformed peer funds and the index. We are writing as fellow shareholders to express our dissatisfaction with the Fund’s managers and the Board, and to announce that we have determined to vote “NO” on this merger. (“TTP”), another of Tortoise’s closed-end fund vehicles focused on the energy space, and then changing the strategy to begin investing into renewable and power infrastructure companies. (“NDP” or the “Fund”) announced in November that its board of directors (the “Board”) has recommended merging NDP shares into the Tortoise Pipeline & Energy Fund, Inc. (NYSE: TTP) and announcing that it would be voting against the proposed merger. (NYSE: NDP), today issued a public letter to NDP’s shareholders outlining its concerns regarding the proposed merger with Tortoise Pipeline & Energy Fund, Inc. NEW YORK, Ma(GLOBE NEWSWIRE) - Aristides Capital LLC, which together with its affiliates beneficially owns 304,131 shares of the outstanding common stock of Tortoise Energy Independence Fund, Inc.
Now is a terrible time to change part of the Fund’s investment mandate into clean energy, as NDP’s management has proposed. After a massive run, valuations in the clean energy space are excessive.
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