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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.

FundWeight1wk Price1wk NAV
TYG10.0%+6.0%+3.9%
NHF10.0%+1.8%+0.3%
DNP7.9%+2.1%+2.6%
JRS10.0%+1.6%+1.5%
INF7.1%+4.2%+3.5%
DDF7.6%+1.4%+1.4%
CFP9.9%+1.1%+1.6%
TTF2.4%+2.3%+2.8%
JRI10.0%+5.4%+2.0%
MXE7.5%+2.2%+2.6%
BME]]2.9%+2.6%+2.5%
SPXU3.5%-3.9%-3.8%
TZA2.1%-3.2%-3.0%
TBT8.2%-3.7%-3.6%
CASH0.9%
TOTAL100.0%+1.9%+1.3%
SPY +1.3%
BND +0.4%
CEFs +2.9%+2.1%

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.

FundWeightPrem/DiscYieldNotes
SMM - Salient Midstream10.0%-8.6%4.9%Replaces TYG
DNP - Duff&Phelps Select8.0%+4.4%7.5%
INF - Brookfield Global5.9%-10.7%5.7%Took profits
NHF - NexPoint Credit9.6%-11.5%6.3%ex-div 08.20
JRS - Nuveen Real Estate10.0%-5.2%8.3%
DDF - Delaware Dividend8.0%-9.8%6.3%
CFP - Cornerstone Prog9.4%+7.8%20.3%
JRI - Nuveen Real Asset5.8%-5.5%8.0%Took profits
MGU - Macquarie Global8.4%-11.3%5.5%New
IIF - MS India5.5%-11.9%noneNew
BME - BlackRock Health1.2%-3.0%4.7%Reduced
Cash / Hedges16.2%
Total100%

Source: Morningstar.com, Dividend.com

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

Source: Performance Of The Hedged CEF Portfolio For Week Ended August 15