Many closed-end fund traders try to exploit narrowing of a fund's discount to net asset value. This strategy often works well, but there are many cases where a discount can remain wide for long periods of time.
One example is the Adams Express fund-ADX, one of the oldest closed-end funds, which started trading in 1929. It has a low expense ratio, but still generally trades at around a 14% discount to net asset value, and this discount has remained for many years. ADX is a good fund, but there has not been a catalyst to narrow its discount to net asset value.
In other cases, a fund's discount may widen considerably before it eventually narrows. An example where this occurred...
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