Dominion Midstream Partners, L.P. (DM, Financial), a holder of natural gas storage, processing, and transportation assets, was also a new purchase in the quarter. The company is a high growth MLP formed by Dominion Resources, Inc., a diversified energy company that provides electricity and natural gas to homes and businesses in the eastern U.S. Dominion Resources recently acquired Questar and as part of that transaction, Dominion Midstream completed its acquisition of Questar Pipelines and the related financing. The market anticipated the equity financing and pushed the stock lower ahead of the equity offering. We took advantage of the pressure to buy what we believe is a long-term growth opportunity at an attractive price. As Dominion Midstream completed the equity offering, the stock price appreciated, validating our belief that recent stock pressure was purely technical in nature. We continue to like Dominion Midstream both because of its 22% guided distribution growth and its large “drop down” inventory of assets that can be sold from Dominion Resources to Dominion Midstream over time.
From Baron Discovery Fund's fourth quarter 2016 commentary.
