Performance Of The Hedged CEF Portfolio For Week Ended August 15

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 |  Includes: IIF, INF, JRI, MGU, SMM, TYG
by: Alvin Rodolfo

Summary

Price performance was +1.9% while NAV advanced 1.3%.

CEFs were up 2.9% in price / 2.1% NAV while Hedges were down -3.4%.

CFP continues to be a controversial inclusion and is for aggressive investors only.

Last week I published a portfolio of CEFs and am updating with results and reweightings. The portfolio of both CEFs and Hedges gained 1.9%. The S&P advanced 1.3% and the bond market advanced 0.4%. The CEF-only portion of the portfolio was up 2.9% while the Hedges-only were down 3.4%.

Last week I also published deep dives into Nuveen Real Estate (NYSEMKT:JRS) and Cornerstone Progressive (NYSEMKT:CFP).

The biggest winner in the portfolio was Tortoise Energy (NYSE:TYG), which was up 6.0% on the back of the Kinder Morgan consolidation. Other big winners were Brookfield Global (NYSE:INF) and Nuveen Real Asset (NYSE:JRI), which were up 4.2% and 5.4%, respectively.

Fund Weight 1wk Price 1wk NAV
TYG 10.0% +6.0% +3.9%
NHF 10.0% +1.8% +0.3%
DNP 7.9% +2.1% +2.6%
JRS 10.0% +1.6% +1.5%
INF 7.1% +4.2% +3.5%
DDF 7.6% +1.4% +1.4%
CFP 9.9% +1.1% +1.6%
TTF 2.4% +2.3% +2.8%
JRI 10.0% +5.4% +2.0%
MXE 7.5% +2.2% +2.6%
BME]] 2.9% +2.6% +2.5%
SPXU 3.5% -3.9% -3.8%
TZA 2.1% -3.2% -3.0%
TBT 8.2% -3.7% -3.6%
CASH 0.9%
TOTAL 100.0% +1.9% +1.3%
SPY +1.3%
BND +0.4%
CEFs +2.9% +2.1%
Click to enlarge

Source: Morningstar.com

For the coming week, the portfolio has been rebalanced to reflect price/NAV performances and the resulting changes in premium/discount. Notable changes include: Switching TYG for SMM in the Energy MLP space, MGU and IIF comes in for TTF and MXE.

The one controversial portfolio inclusion is CFP. This name is for aggressive investors that realize that the dividend is unsustainable and will probably be cut in November.

Fund Weight Prem/Disc Yield Notes
SMM - Salient Midstream 10.0% -8.6% 4.9% Replaces TYG
DNP - Duff&Phelps Select 8.0% +4.4% 7.5%
INF - Brookfield Global 5.9% -10.7% 5.7% Took profits
NHF - NexPoint Credit 9.6% -11.5% 6.3% ex-div 08.20
JRS - Nuveen Real Estate 10.0% -5.2% 8.3%
DDF - Delaware Dividend 8.0% -9.8% 6.3%
CFP - Cornerstone Prog 9.4% +7.8% 20.3%
JRI - Nuveen Real Asset 5.8% -5.5% 8.0% Took profits
MGU - Macquarie Global 8.4% -11.3% 5.5% New
IIF - MS India 5.5% -11.9% none New
BME - BlackRock Health 1.2% -3.0% 4.7% Reduced
Cash / Hedges 16.2%
Total 100%
Click to enlarge

Source: Morningstar.com, Dividend.com

As always, I would appreciate a critique on the portfolio.

Disclosure: The author is long SMM, DNP, INF, NHF, JRS, DDF, CFP, JRI, MGU, IIF, BME, 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.