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Douglas Albo  

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  • Equity CEFs: Will 2015 Be The Year Of The Rotation? [View article]
    I see you are a contributor on Seeking Alpha with your most recent article on Axion Power (AXPW) from November 8th.

    If you really had started reading my articles from when I first started contributing on SA, you would know that I have been exceptionally accurate with my calls on CEFs, both positive and negative, as well as having accurately predicted over 50 distribution cuts or raises.

    Perhaps that is why many of my readers have faith in my articles since it hardly does them any good to curry favor with me as "sycophants", as you call them.
    Jan 7, 2015. 09:15 AM | 12 Likes Like |Link to Comment
  • Equity CEFs: Will 2015 Be The Year Of The Rotation? [View article]
    "And it's the moral responsibility of people like Albo, who are the 1% who own and run things in this country, to make enlightened capitalism available to everyone. Albo doesn't need merely to be reminded of this, but shoved in that direction."

    "Albo has the minted 1% covered in his "Capital Income Management" fund but blithely ignores the little guys in an egalitarian country (sic) that has enriched him and his apparent interlocutors on this thread."

    I've been biting my tongue for the last few days but your comments frankly, are unbelievable. I don't know what makes you think I'm a 1%er but I am not. I am a 1-person outfit operating out of my home who has grown my investment advisory business from virtually nothing a few years ago when I first started writing on Seeking Alpha, to about $25 million under management today (all public information).

    Virtually all of my new clients have come from Seeking Alpha because they they have read my articles and it made sense to them. To imply that I am some fat cat Wall Street money manager who only caters to wealthy people is wrong as most of my clients would hardly categorize themselves as 1%ers . The fact is, I can't take on hundreds of smaller clients because I don't have the resources, monetarily or personally, to do that.

    If you're trying to make a point about the uneven playing field for smaller investors that's fine, but do a little bit more research before you accuse someone of being part of the problem since I am just one of thousands of individual Investment Advisors across this country who have gone off on their own because they thought they had an investment strategy that made sense. And finally, call me Doug or Mr. Albo. Just saying "Albo" is really not very respectful, particularly if you're trying to convince them to do something for you.
    Jan 6, 2015. 11:58 AM | 14 Likes Like |Link to Comment
  • Equity CEFs: Will 2015 Be The Year Of The Rotation? [View article]
    It's not quite that easy. Besides, most of my readers say my articles provide them with the information necessary to make their own decisions, not just the ones I suggest.

    I would not want any investor to become so dependent on my articles for their investment ideas anyway. CEFs are not that hard to figure out...you just have to put in the time and my clients pay me to do that.
    Dec 30, 2014. 12:18 PM | 6 Likes Like |Link to Comment
  • Equity CEFs: Will 2015 Be The Year Of The Rotation? [View article]
    Yep, timing could have been better but I had been suggesting it for quite some time before Nuveen finally dropped it.
    Dec 30, 2014. 12:00 PM | 2 Likes Like |Link to Comment
  • Equity CEFs: Will 2015 Be The Year Of The Rotation? [View article]
    You can't simply graph the two and come to the conclusion that a healthcare mutual fund or a healthcare ETF has dramatically outperformed GRX. GRX has had two Rights offerings over the last 18 months at significant NAV discounts as well as quarterly distributions and capital gain distributions. None of that shows up in a NAV or market price graph but add it all back and that works out to $4.1655 since 2012. Yes, FSPHX and XLV also have quarterly or semi-annual distributions but not to the degree of GRX.

    GRX's portfolio is also 50% healthcare and 50% consumer staple stocks which, since 2012, are up 106.7% (XLV) and 62.3% (XLP) respectively including all dividends added back. Comparatively, GRX is up 106.9% on its market price and 88.3% on its NAV over the same period of time adding back that $4.1655. I think that's pretty good.

    Of course, if you just want to buy and hold, I wouldn't swap FSPHX for GRX either. But CEFs give you many more opportunities to add to your position or take profits than a mutual fund will.

    Dec 30, 2014. 11:42 AM | 4 Likes Like |Link to Comment
  • Equity CEFs: The Nuveen Equity Option CEF Restructuring/Mergers Delayed Again [View article]
    Spread is only 3.5% now. Considering won't close until early 2015, I think that's about appropriate. There's no guarantee QQQX won't drop back down to a discount now.
    Nov 25, 2014. 09:22 PM | 1 Like Like |Link to Comment
  • Equity CEFs: The Long-Term Beneficiary Of The Nuveen Equity Option Restructurings [View article]
    The news I'm hearing is that the shareholder meetings have been adjourned until Friday. So as I put in my article, if Nuveen feels they are close to getting approval from shareholders, then they might just adjourn for a shorter time frame instead of a month.

    My understanding is that the JSN shareholder meeting is the only one that has been put off until December.
    Nov 17, 2014. 04:00 PM | Likes Like |Link to Comment
  • Equity CEFs: The Long-Term Beneficiary Of The Nuveen Equity Option Restructurings [View article]
    If you think a 10-15% correction is coming up, I would think building up cash is your best option. But of the Nuveen equity option funds, the JSN/JPZ merger into BXMX will certainly hold up the best at the NAV level. Though as you know, there's no guarantee the market price will follow suit.
    Nov 17, 2014. 02:42 PM | 1 Like Like |Link to Comment
  • Equity CEFs: QQQX/JLA Merger Update  [View instapost]
    That's why ROC can be so misleading. For some of the EV option CEFs, like ETB and ETV, they're still showing mostly ROC in the distributions but yet their NAVs are net up on the year after distributions. Others, like EXG and ETJ show no ROC and yet their NAVs are down on the year.

    EV is accounting for each differently though I don't know what procedures or rules they are using. The bottom line is stick with funds that are growing their NAVs no matter how the distributions are classified.

    Now for periods of time, all CEFs won't cover their distributions and that's fine if they have low NAV yields but the higher the NAV yield, the more concerning it is.
    Nov 11, 2014. 08:40 AM | Likes Like |Link to Comment
  • Equity CEFs: QQQX/JLA Merger Update  [View instapost]
    The problem with EXG is that it has a heavy overseas exposure, mostly in Europe, AND it has a high NAV yield. YTD, its NAV is down on a pure net loss basis from $11.12 to $10.53 with a total NAV return of just over 2% YTD.

    That's not going to cut it going forward with a 9.2% NAV yield. I don't really own EXG right now and I think you're better off in ETY, which is similar but more US stock based.
    Nov 7, 2014. 06:50 PM | 2 Likes Like |Link to Comment
  • Equity CEFs: QQQX/JLA Merger Update  [View instapost]
    Keep in mind it took Nuveen a YEAR before they finally got shareholder approval on two of their Massachusetts municipal bond funds (NMB) and (NGX) to merger into a third, the Nuveen Massachusetts Premium Income Municipal fund (NMT).

    I'm still optimistic Nuveen will get this done
    Nov 6, 2014. 07:33 PM | Likes Like |Link to Comment
  • Equity CEFs: QQQX/JLA Merger Update  [View instapost]
    A straight up NASDAQ-100 market doesn't help JLA shareholders because the NAV won't capture as much of the upside as QQQX's NAV. The ratio has already gone down from about 75% to 71% since the restructurings were announced. Then there's the uncertainty of whether the merger will go forward or not or if it will be delayed again so I'm guessing between those two reasons, some investors are just getting out of the arbitrage altogether.

    I'm holding both positions (not adding) but like I said, I had to buy a significant position in QQQ in case the NASDAQ-100 continues to rally.

    Really a disappointment but there's not much anyone can do if shareholders are apathetic about voting. Sort of like what happened in the elections this past Tuesday!
    Nov 6, 2014. 05:39 PM | Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 - Part II [View article]
    No. They're all about the same discount levels so no short term opportunity in any of them. Maybe longer term but I'm not holding my breath.
    Nov 5, 2014. 08:54 AM | Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 - Part II [View article]
    You have to differentiate between market price and NAV price. The NAVs of option-income funds will absolutely hold up better than their benchmarks during a correction period with pure US stock based CEFs like JSN, JLA, JPZ, ETJ, ETV & ETB holding up the best.

    But you have no control over the market price and certainly, these funds market prices can drop more than the S&P 500 and almost always more than their NAVs during "mini corrections." But that's where the opportunities are and that's why you have to keep track of their NAVs to know when the widening discounts will make their market prices attractive again.
    Nov 4, 2014. 11:24 AM | 1 Like Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 - Part II [View article]
    http://yhoo.it/1x06Bg8

    Though shockingly, I don't see anything on BlackRock's website documenting this.

    Probably won't have much affect in the short run but in the long run it could be beneficial. Sort of like merging three very underperforming funds into one but at least the economies of scale should help the fund going forward.
    Nov 4, 2014. 08:58 AM | Likes Like |Link to Comment
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