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On the drive back from Phoenix today I heard the first 20 minutes of Cramer on Sirius, writes Roger Nusbaum. He hit on two things that I thought I would touch on. One was the First Israel Fund (ticker: ISL).

I wrote about this fund on August 7. I bought it thinking it would be an intermediate term hold but I was lucky enough to catch a big move (relative to the time I held it). Despite what I what wrote about the trade I was really buying Benjamin Netanyahu, the recently departed finance minister and one time prime minister. Now that he is gone I am not sure how the situation has changed, if at all.

One point he pounded on was that ISL is trading at a discount to NAV. He warned not to buy it at a premium. I have written about this a few times. If a fund has traded at a premium of 5% or less for an extended period I don't think I would be turned off from buying it. A big change in the discount/premium picture might make me hold off however. A premium of more than 5% and I would wait but if a fund I already owned grew to large premium it would not be an automatic sell. ETFconnect has a chart that shows the historical relationship between the NAV and the market price. I was really surprised that Cramer picked this fund. I heard him on why and it makes sense but I am glad I'm out of the position now.

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Source: Jim Cramer on The First Israel Fund (ISL)