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Douglas Albo  

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  • Equity CEFs: Global CEFs For A QE Europe [View article]
    Absolutely it should. I have asked, no...begged, Gabelli to give us some updates on the fund but to no avail. The fund should be fully invested by now and we should hear something in late February about any initial distribution declaration for the 1st qtr, but for the most part, Gabelli leaves you wondering what is going on.

    For a small/mid cap fund, the NAV hardly budges though it is a global value fund so perhaps its just not going to have the NAV upside as a US based small/mid cap fund. I'm waiting for Gabelli to come out with some more color on the fund before I decide what to do with it. Overall, I have not been impressed.
    Feb 7, 2015. 08:16 AM | Likes Like |Link to Comment
  • Equity CEFs: Will 2015 Be The Year Of The Rotation? Part II [View article]
    If you read my December 29th article, you would have known that it was EXACTLY because of the overshoot that I recommended both GGN & GNT, regardless of how gold & commodities performed.

    I'll take a 14.9% total return for GGN and a 9.2% total return for GNT (both also paid a $0.07 distribution) in a little over a month any day compared to a down market!
    Feb 3, 2015. 06:55 AM | 4 Likes Like |Link to Comment
  • Equity CEFs: Global CEFs For A QE Europe [View article]
    Like ROC, its too simplistic to say that negative UNII is a bad omen.

    You have to understand where UNII comes from and most investors use CEF Connect to find out that info. But what you really need to ask is where does CEF Connect get that info? Well, it comes from the fund's latest annual or semi-annual report. So if we know where it comes from then all we have to do is see how they calculate it.

    If you go to a fund sponsor's webpage or SEC filings, just look for the latest report and go down to the statement of operations. Its not difficult to find a fund's Net Investment Income (NII) after expenses and compare that to what the fund paid out in distributions. Quite often, they'll even have a line item for UNII. Then just divide by the number of shares outstanding and voila, there's your UNII per share shown on CEF Connect.

    Just remember though, NII does NOT include options, so any income from a fund's option-writing is not even included in NII. Since most option-income funds rely on their option-writing and not portfolio dividends or interest, UNII is almost always negative.

    Also keep in mind that most leveraged CEFs don't cover their distributions with dividends and interest either, though certainly they rely more on this. Most leveraged CEFs also need portfolio appreciation to cover their distributions and this is why leveraged CEFs are better bull market funds than option funds. But this is why UNII, like ROC, is not necessarily a good indicator for how a fund is performing. You have to dig deeper.
    Jan 31, 2015. 12:44 PM | 3 Likes Like |Link to Comment
  • Equity CEFs: Global CEFs For A QE Europe [View article]
    I would pay less attention to ROC and more attention to the direction of a fund's NAV. A fund can still be claiming partial ROC in their distributions even while their NAV is growing (ETG for example). ROC in itself, is actually a good thing because it is tax-deferred, but when it results in continued NAV loss over time, then its called destructive ROC and that's not good.

    AGD and AOD never actually showed any ROC when they relied on a dividend capture strategy because it was all earned income (portfolio dividends). That's why they rose to such extreme premiums. Everyone thought they were brilliant offering tax-advantaged income with no resulting ROC.

    But what was happening was that they were devastating their NAV in the process so they should have called it "Return of NAV" instead of ROC and as a result, their market prices eventually collapsed.

    But that's all history now and as long as AGD and AOD can cover their NAV yield (6.8%) with their new and improved income strategy, then no NAV loss and no ROC (doesn't mean they can't still claim ROC in their distributions from past realized losses).
    Jan 28, 2015. 07:26 AM | 1 Like Like |Link to Comment
  • Equity CEFs: Will 2015 Be The Year Of The Rotation? [View article]
    RA - I have NO control over comments and have NEVER asked Seeking Alpha to remove or alter comments. None of this is as big of a deal to me as you seem to think it is.
    Jan 28, 2015. 06:52 AM | 2 Likes Like |Link to Comment
  • Equity CEFs: Global CEFs For A QE Europe [View article]
    FEZ and IEV are very similar and roughly the same size in ETF assets. You could use either one but IEV is more diversified with 350 stocks spread among the European markets vs. FEZ with only 50. So I would consider IEV more comparable to an S&P 500.
    Jan 27, 2015. 08:07 AM | Likes Like |Link to Comment
  • Equity CEFs: The Dilemma Of The Equity Option Income Strategy [View article]
    Agreed. I'd like to see it happen. They would be the third to go monthly after EV and BlackRock.
    Jan 13, 2015. 08:48 AM | Likes Like |Link to Comment
  • Equity CEFs: The Dilemma Of The Equity Option Income Strategy [View article]
    Better defensive portfolio? The new BXMX is very defensive.
    Jan 12, 2015. 01:36 PM | 2 Likes Like |Link to Comment
  • Equity CEFs: The Dilemma Of The Equity Option Income Strategy [View article]
    1). No, not really. You just have to watch the NAV. If its growing even after distributions, then everything else is background noise.

    2). All bets are off because a fund sponsor might cut the distribution. The option income won't be that dramatically affected in a market downturn since PM's can tweek the income but a continued deterioration in NAV between paying distributions and portfolio depreciation may force fund sponsors to cut if it continued for a year or two.

    But that's not such a big deal and CEFs will often rally after a distribution cut if the fund has already dropped to a sizeable discount. I would much rather see a fund sponsor be proactive and cut the distribution to get it back down to a lower NAV yield than see a fund keep paying a distribution it can't support.
    Jan 12, 2015. 12:23 PM | 3 Likes Like |Link to Comment
  • Equity CEFs: The Dilemma Of The Equity Option Income Strategy [View article]
    1). UNII is irrelevant in option CEFs because it doesn't include the option income, only portfolio dividends and interest. It's almost always negative in option CEFs.

    2). All funds go through periods in which their income doesn't cover their distributions. The key is whether a fund can reasonably be expected to cover its distributions over time. 7% to 9% NAV yields are pretty safe, much more so than 10% to 12% NAV yields, but of course, in an extended downturn or a bear market, all bets are off. If an NAV yield creeps up closer to 12% because of a market downturn then yes, I would be concerned.
    Jan 12, 2015. 11:48 AM | 3 Likes Like |Link to Comment
  • Equity CEFs: Will 2015 Be The Year Of The Rotation? [View article]
    I put out several articles in 2013 on muni CEFs and I took a significant position in them between mid to late 2013, which I still hold.

    http://seekingalpha.co...

    http://seekingalpha.co...

    http://seekingalpha.co...

    But if you must know, the reason why I don't include fixed-income CEFs in my writings is because you can't necessarily rely on their NAVs, which can be level 2 or even level 3 securities, i.e. without the depth of market participants as level 1 securities.

    Equity CEFs, on the other hand, have generally reliable NAV's because they own mostly stocks, which are level 1 securities.
    Jan 7, 2015. 09:55 AM | 2 Likes Like |Link to Comment
  • 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
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