Seeking Alpha
Medium-term horizon, closed-end funds, ETF investing, portfolio strategy
Profile| Send Message|
( followers)  

Summary

  • Price performance was flat while NAV increased 0.3%.
  • Model changed to include portfolio weightings.
  • Four funds in model ex-dividend this week.

Last week, I published my first article on how to build a diversified hedged closed-end fund portfolio. To properly evaluate how the system is working, I am going to track weekly performance and will share any changes to the portfolio on a weekly basis. As a reminder, the model is not static as changes in both price and NAV will change. Also, I have added a position weighting for this week's recommended portfolio.

For the week ended August 8, 2014, the model portfolio had an average price gain of 0.0% and an average NAV gain of 0.3%. For the week, the S&P 500 was up 0.4% and the bond market was up 0.2%. Performance was hurt by a 3.2% fall in NHF, but I argue in another posting that this is an excellent buying opportunity.

Fund1-wk Price Change1-wk NAV Change
SMM+0.25%+0.61%
DNP+0.89%-0.06%
CFP+0.55%-0.23%
INF-1.67%-0.41%
NHF-3.17%-1.89%
JRS-1.20%+0.36%
BTT+0.88%+1.27%
TTF+1.73%+2.83%
DDF+0.30%+0.55%
JRI+0.42%+0.14%
HQL+1.01%+0.51%
Average+0.00%+0.33%

Source: Morningstar.com

For the coming week, I have added Portfolio Weightings for both CEFs and the Inverse ETF Hedges in order to more accurately assess portfolio performance.

FundWeightPrem/DiscYieldNotes
TYG - Tortoise Energy10.0%-7.6%5.1%Replaces SMM
NHF - NexPoint Credit10.0%-12.8%6.4%
DNP - Duff&Phelps Select7.9%+4.6%7.7%
JRS - Nuveen Real Estate10.0%-5.3%8.4%
INF - Brookfield Global7.1%-11.3%6.0%ex-div 8.12

DDF - Delaware Dividend

7.6%-9.7%6.3%ex-div 8.13
CFP - Cornerstone Prog9.9%+8.4%20.1%ex-div 8.13
TTF - Thai Fund2.4%-12.6%7.7%
JRI - Nuveen Real Asset10.0%-8.5%8.4%ex-div 8.13
MXE - Mexico Equity7.5%-10.7%0.3%new addition
BME - BlackRock Health2.9%-3.1%4.8%Replaces HQL
SPXU - Inverse 3X S&P3.5%
TZA - Inverse 3X Russ2K2.1%
TBT - Inverse 2X 20YR8.2%
Cash0.9%

Sources: Morningstar.com, Dividend.com

As always, I would appreciate any feedback you have on any of the picks or on your portfolio strategy.

Source: How Did The Diversified Hedged CEF Portfolio Do Last Week?