Performance Of The Hedged CEF Portfolio For Week Ended August 22

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 |  Includes: DDF, IIF, NHF, SMM, TTF, TYG
by: Alvin Rodolfo

Summary

Price Performance was +0.7% while NAV advanced 0.6%.

CEFs were up 1.4% in price / up 1.2% NAV while hedges were down 2.3%.

DNP ex-dividend this week.

TTF enters the portfolio while IIF and DDF leave.

The overall portfolio was up 0.7% in price and NAV up 0.6%. The portfolio trailed the S&P500 (+1.8%) and Russell 2000 (+1.7%), but outperformed the Bond Market (-0.2%).

Last week I published deep dives into Duff & Phelps Select Income (NYSE:DNP) and Nuveen Real Asset (NYSE:JRI). I also published a conservative CEF portfolio.

One of the biggest winners was NexPoint Credit Strategies (NYSE:NHF) which was up 3.0% while NAV was up only 1.4%. In an Instablog, I alerted the Seeking Alpha community to an opportunity based on the ex-dividend date and the monthly purchase of shares by the Fund Manager. In a filing, the Manager did indeed buy another 118,364 shares to bring his total holdings to 3,941,971 shares (6.2% of outstanding shares).

The biggest winner was MS India (NYSE:IIF) which was up 3.3% (+3.5% NAV). The biggest loser was JRI which was down 0.6% (+0.8% NAV).

Performance for Week Ended August 22, 2014
Fund Weight 1wk Price 1wk NAV
SMM 10.0% +2.0% +0.6%
DNP 8.0% -0.4% +1.0%
INF 5.9%

+0.8%

+1.5%
NHF 9.6% +3.0% +1.4%
JRS 10.0% +1.8% +0.8%
DDF 8.0% +1.6% +1.3%
CFP 9.4% +0.2% +1.2%
JRI 5.8% -0.6% +0.8%
MGU 8.4% +2.0% +1.0%
IIF 5.5% +3.3% +3.5%
BME 1.2% -0.5% +1.2%
CEFs 81.8% +1.4% +1.2%
SPXU 4.6% -5.2% -5.2%
TZA 4.6% -4.7% -5.0%
TBT 6.9% +0.5% +0.7%
CASH 2.1%
TOTAL +0.7% +0.6%
SPY +1.8%
IWM +1.6%
BND -0.3%
Click to enlarge

Source: Morningstar.com

For the coming week, the portfolio has been rebalanced to reflect minimum trading volumes. Delaware Dividend (NYSE:DDF) was eliminated for this reason, despite it being a profitable trade.

Tortoise Energy Infrastructure (NYSE:TYG) comes back in for Salient Midstream (NYSE:SMM) due to price falling 0.2% while NAV climbed 1.8%.

Thai Fund (NYSE:TTF) joins the portfolio as a replacement for MS India . TTF trades at a deep discount and has impressive NAV growth. IIF was closed due to strong 3.3% rally and current to historical discount to NAV narrowing.

Fund Weight Prem/Disc Yield Notes
TYG - Tortoise Energy Infra 10.0% - 9.5% 5.1% SMM out
DNP - Duff&Phelps Select 9.7% + 1.9% 7.6% ExDiv 08.27
INF - Brookfield Global Infra 8.7% -11.3% 5.7%
NHF - NexPoint Credit 7.4% -10.2% 6.1%
JRS - Nuveen Real Estate 10.0% - 4.3% 8.1%
TTF - Thailand Fund 10.0% -13.2% 11.9% New
BME - BlackRock Health 10.0% - 4.6% 4.7%
JRI - Nuveen Real Asset 7.2% - 6.8% 8.0%
CFP - Cornerstone Prog 9.2% + 6.8% 20.3%
SPXU - Inverse S&P 5.3%
TZA - Inverse Russ2000 5.3%
TBT - Inverse Treasury 20+ 7.2%
Cash 0.0%
Click to enlarge

Source: Morningstar.com, Dividend.com

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

Disclosure: The author is long TYG, DNP, INF, NHF, JRS, 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.