Shell Midstream Partners, L.P. (SHLX, Financial) is the recent IPO of a midstream energy MLP formed by Royal Dutch Shell in 2014. Shares fell as the broad MLP market experienced significant selling pressure because of diminished growth expectations, the prospect of rising interest rates, and tax-loss selling. Shell Midstream belongs to a group of high growth, high multiple stocks that experienced even more selling pressure than the broader MLP market. We believe the company has substantial room to grow, while its cash flows should be relatively less sensitive to falling commodity prices.
From the Baron Asset Fund shareholder letter Q3 2015 by Andrew Peck.
