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Douglas Albo

 
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  • Equity CEFs: Utility CEFs Are Back [View article]
    I'd have to see its holdings. Generally, I'm not very keen on a fund of funds approach since you pay two levels of management fees. And anytime you have a yield that high, my first inclination is to think its gimmicky and too good to be true. Sort of like the Cornerstone funds.
    Feb 4 10:42 AM | 1 Like Like |Link to Comment
  • The Silly Chile Trade Is Back And Bigger Than Ever [View article]
    First Trust (the major holder) manages a number of CEFs including FEO, which is the First Trust/Aberdeen Emerging Opportunity fund. Surprise, surprise!

    I don't see CH as one of its holdings as of their latest quarterly holdings report dated 9/30/2012, but that could have changed. Or, one of their other CEFs could be the one buying or supporting it. Not unusual for a CEF to own other CEFs.
    Feb 1 02:25 PM | Likes Like |Link to Comment
  • The Silly Chile Trade Is Back And Bigger Than Ever [View article]
    What a collapse in ECH, down another -3.5%, over -10% in a week. And of course, CH's NAV is getting crushed along with ECH and I wouldnt be surprised to see Aberdeen slash CH's distribution even more in March.

    And yet, all is calm in CH, up 1.5%. You almost have to see it to believe it!
    Jan 29 03:21 PM | Likes Like |Link to Comment
  • The Silly Chile Trade Is Back And Bigger Than Ever [View article]
    Never seen anything quite like this. You would think the two funds are inversely correlated, particularly on a day like today when ECH is down -2.5% and CH is up 1.5%. What is accounting for ECH to be in such a free fall besides just being an emerging market ETF?
    Jan 29 01:41 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Will ETFs Beat CEFs Again In 2014? [View article]
    Yes, red just means it underperformed the S&P 500. I use the S&P 500 as a general benchmark though EXG would not use the S&P as its primary benchmark at all. Not only do option-income funds have a CBOE buy/write index they typically compare against but EXG is not even US based with most of its stock portfolio overseas. Still, I need a common benchmark for my tables and the S&P 500 is the best index to use.
    Jan 23 09:50 PM | Likes Like |Link to Comment
  • Equity CEFs: Will ETFs Beat CEFs Again In 2014? [View article]
    Yes, you may be confusing the large capital gain distribution in late December with a loss in the fund. When the fund goes ex-dividend, it drops by the amount of the distribution, which you get back in a week or so via the distribution payment. Some funds may also have large capital gains during the same ex-div period in December, which is what happened to JRI.
    Jan 22 10:18 AM | Likes Like |Link to Comment
  • Equity CEFs: From Birth To Liquidation - The Story Of The Allianz International & Premium Strategy Fund [View article]
    Sorry to disappoint you...try this one:

    http://seekingalpha.co...

    "Despite being mostly a fixed-income fund, PGP's NAV can be extremely volatile because of its heavy use of leverage and futures/options. During the worst of the financial crisis in early 2009, PGP's NAV dropped to the $6 level from a $23.83 inception NAV in 2005 and an $11.58 current NAV. Despite this volatility, PGP has NEVER cut or raised its distribution and this has created an aura of superfund status among investors that has pushed its premium valuation to an unbelievable 82.6% pricing over its NAV, by far the largest of any CEF. Unfortunately, this has become a curse as well as a blessing for the fund. A blessing for old investors and a curse for new ones."
    Jan 17 09:00 AM | Likes Like |Link to Comment
  • Equity CEFs: Which Funds To Buy And Sell Right Now - Part IV [View article]
    Thank you, one and all. I don't always have time to respond to all my messages so let this be a catchall for those who I have not responded to...

    Thank you for your support and I hope you have a wonderful Christmas, Holidays and New Year!
    Dec 24 04:03 PM | 2 Likes Like |Link to Comment
  • Equity CEFs: Which Funds To Buy And Sell Right Now - Part IV [View article]
    The Clough funds are very complex funds. They are suppose to be 130/30 funds, long up to 130% (stocks/bonds) & short up to 30% (stocks/ETFs) but their performance doesn't seem to suggest that. I think they are long more like 115% and short 15%, mostly in ETFs. In either case, that is the reason for their large expense ratio (management fee, leverage costs & short securities)

    The strategy is difficult because you obviously have to pick long stocks that will outperform your shorts as well as their benchmark ETFs. Not easy to do. The fund also sells options. Overall, a lot of moving parts but the funds have done surprisingly well at the NAV level this year so Clough is pulling it off, so far. The three Clough funds, GLQ, GLO & GLV are also moving to monthly pay in 2014, which is a nice feature as well.
    Dec 20 09:00 AM | 1 Like Like |Link to Comment
  • Equity CEFs: Which Funds To Buy And Sell Right Now - Part III [View article]
    It absolutely can be. That's why leveraged CEFs need strong markets to invest in to take advantage of the good times because they have to be able to ride out the bad times when the markets aren't so favorable. JTA's NAV is up 28% YTD but only has to cover a 6.5% NAV yield so no destructive ROC this year even if the distributions are partly ROC. Almost all leveraged equity CEFs don't cover their distributions just with net investment income (NII). They also need appreciation and if they're not getting it, then yes...they will have destructive ROC.
    Nov 21 05:50 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Which Funds To Buy And Sell Right Now - Part II [View article]
    What are you talking about? ETB has cut its distribution ONCE in its history, back in early 2011, from $0.45/qtr to $0.324/qtr or $0.108/month, where it is today. Back in 2010, ETB's NAV traded around $14-$15, still down a lot after the financial crisis which ended in March, '09. ETB NEVER cut its distribution during the financial crisis so with a very high $1.80 annual distribution back then, ETB's NAV yield was over 12% and unsustainable. I have pointed out many times that CEFs with 12%+ NAV yields are in danger of a distribution cut if their NAV falls too far. ETB's NAV yield now is a very reasonable 8.1% and in NO danger of a cut.
    Nov 15 08:49 AM | 1 Like Like |Link to Comment
  • Equity CEFs: Which Funds To Buy And Sell Right Now - Part II [View article]
    Nope...same tax deferral on the distributions whether its a retirement or taxable account. The real advantage is when you compare the tax advantages of owning high ROC CEFs in a taxable account compared to other yield oriented investments.
    Nov 14 12:30 PM | Likes Like |Link to Comment
  • Equity CEFs: Which Funds To Buy And Sell Right Now - Part II [View article]
    Yes, but they trade at narrower discounts and slightly lower yields. JSN & JPZ are also very defensive like JLA but are more S&P 500 weighted. I just like JLA better but JSN & JPZ are very similar.
    Nov 14 12:15 PM | Likes Like |Link to Comment
  • Equity CEFs: Which Funds To Buy And Sell Right Now - Part II [View article]
    All good points and I totally agree!
    Nov 14 11:39 AM | Likes Like |Link to Comment
  • Equity CEFs: Which Funds To Buy And Sell Right Now - Part II [View article]
    ETB never paid $0.45 per month. Was always a quarterly pay until Eaton Vance changed all of their option-income funds to monthly pay roughly a year ago. Which brings up another reason to own the fund as monthly pay is much more attractive than quarterly pay.
    Nov 14 11:34 AM | Likes Like |Link to Comment
COMMENTS STATS
618 Comments
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