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Douglas Albo  

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  • 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
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 - Part II [View article]
    I can't follow or include every equity based CEF. NHF could be a great fund at a great valuation but I'm less likely to follow one that is not from one of the more well known or larger fund sponsors.
    Nov 3, 2014. 03:45 PM | 2 Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 - Part II [View article]
    JLA is one of the most defensive CEFs you can buy and so it will not capture near the upside of the NASDAQ-100 or the S&P 500 in a strong up market environment, like from 2012. It has nothing to do with its portfolio, which is all NASDAQ-100 and S&P 500 stocks. It has everything to do with its option income strategy of selling index options slightly in-the-money to slightly-out-of-the money on 100% of the notional value of the portfolio.

    This is just not the right market for JLA. If the market had been flat or even down since the merger announcement with QQQX, the NAV ratio between the two funds would be more in JLA's favor at closer to 76% instead of the 71% that it is.

    Unfortunately, I can't do anything about shareholder vote delays or the fact that the NASDAQ-100 is back to a ramp up mode. If the merger had occurred when it was suppose to, we would all be owning QQQX shares and enjoying the ride up but now we have to wait until the merger is approved which makes it all the more difficult when the markets take off like this.

    I will hold JLA until the merger is approved and converted to QQQX shares, which hopefully will be in early 2015 now.
    Nov 3, 2014. 03:31 PM | Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 - Part II [View article]
    GRX is not material to this article so I don't have to include a disclosure. But yes, I am still very long GRX.
    Nov 3, 2014. 01:50 PM | Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 [View article]
    Exactly my point. Look, healthcare and biotech have had an incredible run and it may go on for all I know. But if it doesn't, GRX is 50% in consumer staples and in fact, foods is its largest sector exposure, not healthcare.

    I can feel comfortable taking a large position in GRX because its diversified in primarily two defensive sectors. Maybe you feel you can take a large position in PJP and if so, that's your prerogative.
    Oct 30, 2014. 08:28 AM | 3 Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 [View article]
    Then buy RXL if you want to load up on healthcare. It's blown away all of them. It's all about risk/reward and how big a position you're willing to take.
    Oct 29, 2014. 01:16 PM | Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 [View article]
    I like both but certainly UTF is going to be higher risk/higher reward as a leveraged fund vs. BUI as an option-income fund. They have some overlap in their portfolios but BUI is going to be more global utility, i.e. electric whereas UTF is more global infrastructure, i.e. towers.
    Oct 28, 2014. 11:07 AM | 2 Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 [View article]
    I own DPG, which is similar to DNP but at a much better valuation. DPG has exposure to MLPs as well as utilities so you have to take that into consideration. Both funds have done very well this year at the NAV level but DNP's valuation has hurt its market price since 2012 when it was at a 40% premium. Certainly better this year with its more reasonable valuation but I still prefer DPG.
    Oct 28, 2014. 09:08 AM | 2 Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 [View article]
    Yes, probably should have mentioned that there will probably be a capital gain distribution in December but I don't place a big precedence on that since again, the NAV and market price will just be reduced by the capital gain amount. So it's really awash in the long run.
    Oct 28, 2014. 09:00 AM | 2 Likes Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 [View article]
    ETJ's NAV has improved from its risk-adjusted days when it bought put options as well as sold call options but ETJ is still the most defensive of the EV option-income funds so it is way down the list going back to 2012 when the market really ramped up.
    Oct 28, 2014. 08:57 AM | 1 Like Like |Link to Comment
  • Equity CEFs: Funds To Buy And Sell Heading Into 2015 [View article]
    GRX's NAV is up 8% YTD when you add back the $0.36 in distributions + $0.76 in NAV reduction due to the Rights offering. $1.1244 total to be exact.

    That compares favorably with XLP but XLV (GRX's two benchmarks) is just leaving every ETF in the dust, making new all-time highs everyday it seems. XLV, which is mostly large cap pharmas and healthcare services, is like a tech stock right now, up 18.9% YTD. GRX's largest sector is foods and though it owns many of the large cap healthcare names in XLV, just not that much.

    I like JCE. Would buy more on a dip.
    Oct 28, 2014. 08:51 AM | 3 Likes Like |Link to Comment
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