Three Reasons To Like the Mexico Equity and Income Fund

I recently added to a long term position in the Mexico Equity and Income Fund (MXE). The Mexican economy is benefiting from higher crude oil prices which should help the stocks in the fund. Here are some other reasons I like it:

1. On Friday, the discount to NAV was over 16% which is well above the average range for the last year.
2. Shareholder Friendly: The closed end fund activist, Phil Goldstein, sits on the board of MXE. Phil has a good reputation for treating shareholders well. I am sure that management will do something to shrink the discount if it stays at these levels (e.g. share buyback, tender offer etc).
3. Strong Sponsorship: The well respected hedge fund, Renaissance Technologies, holds an 8% position in MXE. City of London Asset Management also holds a position.

Full Disclosure: I am long shares in MXE.