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Douglas Albo  

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  • 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
  • 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
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