A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
Dear "Hresis"
Interesting comment. Assuming your portrayed self is your actual self, would you be willing to take my call so that I could learn a bit about the extent that true governance dynamics were visible to you in fund management? It would not be necessary that I quote you but if your portrayed identity is true, I would be grateful for your contribution to my knowledge base.
A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
Dearge RichAbe
Thank you for your topic of merit. I’d be shocked if slightly discounted funds ever comprised a majority proportion of my short positions. If I believed the market price of every particular fund was truly on a random walk that circulated NAV, I would call anyone that ever shorted a Closed End trading at a discount crazy.
In my view, buying funds at discounts or shorting funds at premiums is a fool errand absent a directional move to parity. Directional changes to relative valuations are far from random in my view. Quantitative data on Closed-End Funds is easy to observe. I would argue that most if not all market participants share most of the same popular quantitative data (discount versus historical averages, etc).
Personally, I find it important to contemplate why the data is what the data is. I find it important to contemplate the catalysts that affect the data. Do I know exactly where MTS’ discount valuation is going? No. Have I contemplated who the selling and buying forces at various levels are likely to be? Yes, of course.
If somebody thinks it’s easy to profit and hard to lose with high premium shorts that make intuitive sense, they’d all have been consistent shorters of Cornerstone Funds. For those that aren’t completely tuned in to the point I’m trying to make, this is definitely neither a recommendation nor advocate comment regarding Cornerstone.
Comments challenging the merits of supply and demand forces (catalysts) on the funds discussed in this piece would be welcomed. I would also like to encourage any comment seeking to explain the variability of Allianz' Closed-End Funds' Corporate Governance with reasoning other than conflicted interest.
A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
Dearge George
I appreciate these topics of merit. In shorting MTS, my thesis is not one of deteriorating NAV. I actually like that the simplistic NAV profile you have cited may reduce the “noise”… or extent to which NAV variation might otherwise corrupt how my thesis is graded by “Mr. Market”. Isolation among his grading variables is not undesirable. In theory, if NAV stays constant, “Mr. Market” would grade me precisely on what my analysis has sought to anticipate, the direction of the current discount.
I’m going to discuss the relative valuation topic in response to different comment so that I can show you the respect of responding to your less obvious topic: varied financial models for mechanics between brokers.
(Discount) Brokers are each marketing their own services, and each could be said to choose their own target market. Some offer “free” trading of ETFs. Others may seek to offer terms on mechanics you noted that may compete with those terms to which hedge funds are exposed. Do I expose myself to the mass market brokers who appeal to the novice retail crowd when I short sell Closed-Ends? No, of course not. However, I would argue the biggest problem with the short selling mechanics affecting mass market easy discount brokers at this point in time is not interest rates on proceeds, with current rates near zero anyway.
Again, I will be responding to the relative valuation topic in my response to “RichAbe”. I thank you for bringing up merited topics.
Why PEK May Be Less Hazardous Than CAF [View article]
Short term, relative valuation to NAV is among the common hazards, no doubt. You are correct in that I didn’t explicitly state this. Rather, I cited a “lack of rationality” in the debut, and called it “goofy”. More broadly, some of the understated tone may have been lost when Seeking Alpha editors re-titled my piece. I’m clearly an advocate of neither. On a relative basis, I merely gave credit for PEK being less hazardous than a Chinese Bonfire… an analogous reference y to CAF’s governance. Not sure what Seeking Alpha disliked about my own title, but perhaps they might have considered a reference to the ‘classic’ film which I also didn’t name: “Dumb and Dumber”.
Great mention regarding the exchanges... such a listing would probably be a catalyst for revaluation of China A shares and products which played to their perceived scarcity.
A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
However misdirected, the experience after my Alpine call has taught me that some people misdirect anger toward the observer rather than the subject being observed. I can neither take action, nor speak on behalf of Allianz any more than I can control the willingness of Steve Plump (Allianz’ Head of Mutual Fund Distribution) to be responsive on the subject governance consistency.
A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
No, I have not looked at shorting CSP. My style of research tends to prohibit ongoing familiarity with unlimited names. I am always interested in observing the rationale of others though. Those with closed minds never grow smarter. I can't offer others advice directly so please never ask me for comment in a private message, but I read both public comments and my Seeking Alpha inbox.
Myth Dispelled: Contrasting the Options CEF With Dividend Capture Funds [View article]
Actually, Carl may well be long. There are also several purported experts who are, including one which has historically done consulting business for Funds that were raising assets. Different people may be focused on different things. Other times, analysts may themselves be conflicted. At the end of the day the reason for different views is not relevant to Mr Market. Observing different data and/or or assessing data differently makes for markets.
In my experience, taking positions opposite relatively smart people can at times be advantageous in contrast to taking positions opposite completely irrational investors. If and when a smart person observes the flaw to their investment view, their market action tends to be rational and the effect that results less unpredictable.
No one should assume anyone has any idea what I’m focused on. The “Nogrowth” comment is well written, but is ill-informed or otherwise wrongly assumes my rationale. Have I shared a forward looking thesis here? No. The only thing this article was intended to do was to correct the most recent factual error made by an alternate Seeking Alpha contributor. This piece was contributed only in respect to the Closed-End Fund and Seeking Alpha communities.
Myth Dispelled: Contrasting the Options CEF With Dividend Capture Funds [View article]
They can manufacture any particular taxable income they choose by altering the velocity of dividend capture. The distributions are not technically Return of Captal (“ROC”), but I view it as a taxable cousin to ROC. AOD and AGD are many things, but I would not suggest analysis of them is simple. Frankly, AOD and AGD have helped some purported Closed-End Fund experts expose professional shortcomings.
BlackRock Enhanced Government Fund: Observations of a CEF and Its Tender [View article]
Dear Mikenh
Thank you for the courteous and constructive feedback. I certainly don’t fashion writing as any primary skill I possess. I recently resumed contributing to Seeking Alpha I’m content to spend the time writing because I believe the comment challenges (primarily as to content) can sharpen my acumen for thesis construction. But while I honestly respect some financial journalists, I don’t aspire to become someone I’m not. Again, thanks for the feedback, and please continue to offer the same regarding content in all pieces. Although this particular contribution is not regarding a security in which I anticipate taking any position, challenging comments from readers can serve my interests to continually grow wiser and more acute.
"When the pen name 'Joe Eqcome' has an untenable or weak position that can not be argued in merit, he (or she) tactically deflects from the actual topic of concern every time." - Dan Plettner
If you are going to pitch yourself as a Closed-End Fund guy, it may be appropriate that you put the necessary effort into keeping up with at least those funds to which you will lead your audience to believe you are accurately informing them.
Not sure how you had missed the August 11th SLS open-ending merger news that preceded your Activism target pitch last week. This week your audience would be misguided to believe that ETJ and the Alpine Funds share an option focus.
With respect to the CEF and Seeking Alpha communities, Dan Plettner
CEF Weekly Review: Analysis of Risk Continues to Shift [View article]
Dear Anonymous Writer, "Joe Eqcome"
Perhaps you spent too long working for an old stodgy Wall Street firm if things that only makes sense for those collecting fees from the shareholders also makes sense to you, a purported advocate to the ordinary Closed-End Fund investor…
So are you are in favor of a Closed End Fund burning up per share NAV in a bonfire, based on being able to transfer the rights to watch the bonfire? Its really cool watching shareholder wealth go up in smoke in order to benefit Assets Under Management ("AUM"), huh?
It doesn’t bother you that an Advisor makes more money by destroying the per share NAV of the shareholders?
But I suppose you’d argue that despite the implications of a fund trading at a discount, the shareholders are lucky to have the “right” to buy more in a per share NAV destructive transaction.
How much Wall Street Cool-Aid did you drink over the years?
Over time, you have more and more become a disgrace to your purported mission... just my humble opinion, of course.
Deutsche Bank's GCS: Expect Near Term Liquidity at Full NAV [View article]
I license trading data to Covestor Ltd, a Registered Investment Advisor who is entitled by terms of my data licensing agreement to use that data in effort to model various style biases:
I also license text to Covestor, which may refer to my perspective on any of my personal positions on an overall basis, or within any style in which I manage various accounts:
A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
Interesting comment. Assuming your portrayed self is your actual self, would you be willing to take my call so that I could learn a bit about the extent that true governance dynamics were visible to you in fund management? It would not be necessary that I quote you but if your portrayed identity is true, I would be grateful for your contribution to my knowledge base.
Respectfully Yours,
Dan Plettner
A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
Thank you for your topic of merit. I’d be shocked if slightly discounted funds ever comprised a majority proportion of my short positions. If I believed the market price of every particular fund was truly on a random walk that circulated NAV, I would call anyone that ever shorted a Closed End trading at a discount crazy.
In my view, buying funds at discounts or shorting funds at premiums is a fool errand absent a directional move to parity. Directional changes to relative valuations are far from random in my view. Quantitative data on Closed-End Funds is easy to observe. I would argue that most if not all market participants share most of the same popular quantitative data (discount versus historical averages, etc).
Personally, I find it important to contemplate why the data is what the data is. I find it important to contemplate the catalysts that affect the data. Do I know exactly where MTS’ discount valuation is going? No. Have I contemplated who the selling and buying forces at various levels are likely to be? Yes, of course.
If somebody thinks it’s easy to profit and hard to lose with high premium shorts that make intuitive sense, they’d all have been consistent shorters of Cornerstone Funds. For those that aren’t completely tuned in to the point I’m trying to make, this is definitely neither a recommendation nor advocate comment regarding Cornerstone.
Comments challenging the merits of supply and demand forces (catalysts) on the funds discussed in this piece would be welcomed. I would also like to encourage any comment seeking to explain the variability of Allianz' Closed-End Funds' Corporate Governance with reasoning other than conflicted interest.
Respectfully Yours,
Dan Plettner
A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
I appreciate these topics of merit. In shorting MTS, my thesis is not one of deteriorating NAV. I actually like that the simplistic NAV profile you have cited may reduce the “noise”… or extent to which NAV variation might otherwise corrupt how my thesis is graded by “Mr. Market”. Isolation among his grading variables is not undesirable. In theory, if NAV stays constant, “Mr. Market” would grade me precisely on what my analysis has sought to anticipate, the direction of the current discount.
I’m going to discuss the relative valuation topic in response to different comment so that I can show you the respect of responding to your less obvious topic: varied financial models for mechanics between brokers.
(Discount) Brokers are each marketing their own services, and each could be said to choose their own target market. Some offer “free” trading of ETFs. Others may seek to offer terms on mechanics you noted that may compete with those terms to which hedge funds are exposed. Do I expose myself to the mass market brokers who appeal to the novice retail crowd when I short sell Closed-Ends? No, of course not. However, I would argue the biggest problem with the short selling mechanics affecting mass market easy discount brokers at this point in time is not interest rates on proceeds, with current rates near zero anyway.
Again, I will be responding to the relative valuation topic in my response to “RichAbe”. I thank you for bringing up merited topics.
Respectfully Yours,
Dan Plettner
Why PEK May Be Less Hazardous Than CAF [View article]
Great mention regarding the exchanges... such a listing would probably be a catalyst for revaluation of China A shares and products which played to their perceived scarcity.
Respectfully Yours,
Dan Plettner
A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
Respectfully Yours,
Dan Plettner
A Closed-End Investor's Thesis on Distribution Variances and Allianz's Funds [View article]
Respectfully Yours,
Dan Plettner
Myth Dispelled: Contrasting the Options CEF With Dividend Capture Funds [View article]
In my experience, taking positions opposite relatively smart people can at times be advantageous in contrast to taking positions opposite completely irrational investors. If and when a smart person observes the flaw to their investment view, their market action tends to be rational and the effect that results less unpredictable.
No one should assume anyone has any idea what I’m focused on. The “Nogrowth” comment is well written, but is ill-informed or otherwise wrongly assumes my rationale. Have I shared a forward looking thesis here? No. The only thing this article was intended to do was to correct the most recent factual error made by an alternate Seeking Alpha contributor. This piece was contributed only in respect to the Closed-End Fund and Seeking Alpha communities.
Respectfully Yours
Dan Plettner
Myth Dispelled: Contrasting the Options CEF With Dividend Capture Funds [View article]
Respectfully Yours
Dan Plettner
BlackRock Enhanced Government Fund: Observations of a CEF and Its Tender [View article]
Thank you for the courteous and constructive feedback. I certainly don’t fashion writing as any primary skill I possess. I recently resumed contributing to Seeking Alpha I’m content to spend the time writing because I believe the comment challenges (primarily as to content) can sharpen my acumen for thesis construction. But while I honestly respect some financial journalists, I don’t aspire to become someone I’m not. Again, thanks for the feedback, and please continue to offer the same regarding content in all pieces. Although this particular contribution is not regarding a security in which I anticipate taking any position, challenging comments from readers can serve my interests to continually grow wiser and more acute.
Respectfully yours
Dan Plettner
BlackRock Enhanced Government Fund: Observations of a CEF and Its Tender [View article]
CEF Weekly Review: Tug of War [View article]
CEF Weekly Review: Tug of War [View article]
Not sure how you had missed the August 11th SLS open-ending merger news that preceded your Activism target pitch last week. This week your audience would be misguided to believe that ETJ and the Alpine Funds share an option focus.
With respect to the CEF and Seeking Alpha communities,
Dan Plettner
CEF Weekly Review: Analysis of Risk Continues to Shift [View article]
Perhaps you spent too long working for an old stodgy Wall Street firm if things that only makes sense for those collecting fees from the shareholders also makes sense to you, a purported advocate to the ordinary Closed-End Fund investor…
So are you are in favor of a Closed End Fund burning up per share NAV in a bonfire, based on being able to transfer the rights to watch the bonfire? Its really cool watching shareholder wealth go up in smoke in order to benefit Assets Under Management ("AUM"), huh?
It doesn’t bother you that an Advisor makes more money by destroying the per share NAV of the shareholders?
But I suppose you’d argue that despite the implications of a fund trading at a discount, the shareholders are lucky to have the “right” to buy more in a per share NAV destructive transaction.
How much Wall Street Cool-Aid did you drink over the years?
Over time, you have more and more become a disgrace to your purported mission... just my humble opinion, of course.
Respectfully Yours
Dan Plettner
The Present and Future of Alpine Funds [View article]
live.covestor.com/2010...
Respectfully Yours,
Dan Plettner
Deutsche Bank's GCS: Expect Near Term Liquidity at Full NAV [View article]
search.covestor.com/fi...
I also license text to Covestor, which may refer to my perspective on any of my personal positions on an overall basis, or within any style in which I manage various accounts:
live.covestor.com/auth...
I am not an employee of Covestor, nor am I an Investment Advisor. Questions pertaining to the Covestor products should be asked to Covestor.
Respectfully Yours
Dan Plettner