Breadcrumb Home June 24, 2013 01:00 AM MLPs energized Master limited partnerships are growing on institutional investors because of their high distributions and strong risk-adjusted returns. Tweet Share Share Email More Toggle Fullscreen Share P&IQ Historically, retail investors have dominated MLP investing. Recent hiring activity, however, indicates that is changing. Toggle Fullscreen Share Tortoise Capital Advisors, Bloomberg Institutional investors have been lured by MLPs' attractive payouts as an alternative to lower-yielding investments. Toggle Fullscreen Share Bloomberg LP Since its inception, the Alerian MLP index, which tracks the 50 “most prominent” MLPs, has exhibited higher risk-adjusted returns than similar income-generating indexes. Toggle Fullscreen Share Bloomberg LP In recent years, MLPs have become a less effective diversification tool, as correlations with broader indexes have risen.