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Medium-term horizon, closed-end funds, ETF investing, portfolio strategy
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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.

Disclosure: The author is long TYG, NHF, DNP, JRS, INF, DDF, CFP, TTF, JRI, SPXU, TZA, TBT. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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