Higher Rates Won't Rock Pipeline Plays says Hennessy Fund Manager

The growth of the natural gas industry is driving pipeline and distribution stocks higher, not simply investor demand for higher yields, said Skip Aylesworth, portfolio manager for the Hennessy Gas Utility Index Fund. Aylesworth added that natural gas prices will remain between $4-$6 unless we see a severe weather event like last winter. ONEOK and UGI are two of Aylesworth's top picks. He added that pipeline MLPs will still perform well even if interest rates rise due to the secular growth of the industry. Finally, Aylesworth said the industry is benefiting from President Obama's recent warming to natural gas as a way to meet America's energy needs.