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Douglas Albo

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  • Equity CEFs: Sell This, Buy That From These Fund Families [View article]
    I've written many articles on ROC so I think I understand the subject well thank you. It was more a rhetorical question to see what your understanding was since many investors don't realize that ROC can actually be an advantage and that fund sponsors will even try to maximize ROC at really no cost to the fund's performance.
    Mar 5, 2014. 04:27 PM | 12 Likes Like |Link to Comment
  • Equity Income CEFs: 4-Month NAV Performances [View article]
    I have no relationship with Eaton Vance and if I did, it certainly isn't helping these funds anyway. If you would take a minute and look at the tables you would understand why i consider many of their funds to be undervalued. I'd be happy to write about other funds if I felt they offered better value but I just don't see it right now.

    In my experience with these funds, there WILL be a rotation back to them and it would behoove investors to get in front of that. It's taken longer than I expected but I have no doubt it will happen.
    May 4, 2011. 03:17 PM | 12 Likes Like |Link to Comment
  • Equity CEFs: Which Funds Have A Real Return Of Capital? (Part II) [View article]
    Yours is one of the most inane comments I have ever received. First of all, I don't follow fixed-income CEFs like PHT or WEA and all you have to do is follow my articles to see that they all start with "Equity CEFs." Second, you can't compare fixed-income funds with equity funds anyway. Apples and oranges. Most all fixed-income CEFs use leverage as well, whereas all the funds mentioned in my article do not.

    However, comparing four global stock funds that came public around the same time, at the same price AND at the same yields I believe is totally relevant. The fact that I used performance figures covering both bear and bull markets alike makes the comparison even more credible because I did not cherry pick time frames to benefit one income strategy over another.

    As for using the Alpine funds as comparisons, the whole point of the article is to show how poor performing funds are being valued compared to outperforming funds. If you want an objective performance comparison, yes...I put those out to. Go to my July 2nd article covering ALL equity funds NAV and market price performances for 2012. Here it is for you...

    And while you're at it, why don't you see how many times I mention the Eaton Vance funds in the article. Come to think of it, how many recent articles have I written that even feature Eaton Vance? I see only 1 article in my last 23, going back to 2011, that directly covers the Eaton Vance funds.

    The fact of the matter is I'll write on ANY equity CEF that I consider to be undervalued or overvalued. This year I have been writing mostly on the leveraged equity funds, as well as some of the BlackRock funds which have gotten hit hard in 2012, but I have certainly not been focusing on the Eaton Vance funds this year.
    Jul 17, 2012. 05:30 PM | 9 Likes Like |Link to Comment
  • CEF Strategies: Forget 1929, Why 2014 Is More Like 2000 [View article]
    Sorry to disappoint you Mr. Andros! And to think you wrote me such a nice note last Christmas. The fact is I have several articles I write at the same time with different themes and with varying levels of completion and when one seems more timely than the others, I finish it up. So there you go!

    Oh, and by the way its sophomorically, not sophmorically.
    Feb 21, 2014. 07:50 PM | 7 Likes Like |Link to Comment
  • China: Crashing Economic Data Creates Great Investment Opportunity [View article]
    And this is coming from someone named gaseseses? I actually liked the article very much and I think the author is right on. Grammar is second to content in my opinion.
    May 25, 2012. 10:32 AM | 7 Likes Like |Link to Comment
  • Beware Of Covered Call Funds [View article]
    Thank you. Since I wrote an article last week in direct contrast to yours, I feel compelled to make a couple comments. The problem I have with the 3-year look back period is that it includes an extended period of time (some longer than others) in which these funds were paying out excessively high NAV yields (many at 12%+) and were seriously eroding their NAVs, particularly the global funds. So yes, they were not able to cover their distributions back then. However, all of these funds have since cut their distributions to much more attainable 7% to 9% NAV yields so they will start to look better and better as they put their high NAV yield destructive periods in 2010-2011 behind them.

    Second, I have a question regarding the risk/reward measure of these funds and whether you are using the market prices or NAV prices in your analysis? I believe you are using the market prices since NFJ would not be that highly rated over the past 3-years if you were using its NAV. NFJ raised its distribution substantially in late 2010 which is why its market price has done so well but its NAV has been nothing special over the past 3-years.

    So if you're using the market prices to compare risk adjusted returns, then that is not really apples to apples with the S&P 500. If you performed a risk adjusted analysis with the NAVs of these funds, not only will that show much less volatility compared to their market prices but I believe they will show a much better risk/reward when compared to the S&P 500. Of course, you can't buy the NAV like you can an ETF but then you can't buy an ETF at a double digit discount either!
    Apr 8, 2013. 04:21 PM | 6 Likes Like |Link to Comment
  • Equity CEFs: Eaton Vance Really Wants You To Own Its Option-Income Funds [View article]
    That's BS and you know it. I went over all my articles (6 total) that recommended EXG beginning on 1/13/2011 and the only time you would not have made money was when I wrote about EXG on 4/28/11, not long before the overseas markets took a dive and actually very close to its $11 market price high. Even then, from EXG's market price high, you would not have had a significant loss if you had held onto the shares (-2.8% on a total return basis and -1.1% on a reinvested basis), which for a mostly global fund, is still significantly better than the most popular international ETF's like EFA or IEV.

    In fact, from about October 2011 on, you would have been better off in EXG than the S&P 500, so please...get your facts straight before you say you have "considerable losses."
    Nov 30, 2012. 07:52 AM | 6 Likes Like |Link to Comment
  • Equity CEFs: Terrific Opportunity In A Duff & Phelps Utility Fund [View article]
    Snotty? "The report is incomplete without describing annual expenses." Sorry, but I'm sensitive to that.
    Sep 24, 2013. 12:49 PM | 5 Likes Like |Link to Comment
  • Fed Targeting 4% To 5% Nominal 10-Year Treasury Yield And Baa Corporates Approaching 7% [View article]
    If you're right, load the boat in TBT. Personally, I think the new normal will be quite a bit less than the historical average.
    Jun 22, 2013. 10:41 AM | 5 Likes Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors [View article]
    Gee, I wouldn't be very good if I missed THAT one!

    I point out at the end of the article that ETY, and in fact, ALL of the Eaton Vance equity CEFs pay monthly now. Sort of like a 3 for 1 stock split. Same distribution and yield but much more advantageous over quarterly pay.
    Jan 28, 2013. 05:24 PM | 5 Likes Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors [View article]
    I make mention of the change in Alpine's management team but what I have not seen is anything in regards to a change of investment strategy. In fact, this in their January 18th press release..."The Funds’ investment objectives remain the same – to seek high current dividend income, a majority of which with respect to AGD is intended to be qualified dividend income, and secondarily, long-term growth of capital."

    I don't mean to crow, but for two years on Seeking Alpha (and for a year prior to that on investment boards) I have been warning about AOD and no avail, so forgive me for saying 'I told you so.'
    Jan 28, 2013. 11:41 AM | 5 Likes Like |Link to Comment
  • If Bill Clinton Gave A Speech On Fiscal Responsibility In Equity CEFs [View article]
    My integrity? Maybe you should be directing that question to the sponsors of these funds who lure investors in with distributions and yields they know they can't support. I follow ALL of the higher yielding equity CEFs and perform short and long term analysis on virtually all of them so I'm not just randomly picking on funds to short. I know which ones are operating in the best interest of investors and which ones are not.

    Oh, and the facts changed quite a bit since my last article. NAI cut its distribution substantially which is exactly what I predicted.
    Sep 10, 2012. 07:42 PM | 5 Likes Like |Link to Comment
  • Greek Default And Devaluation: Would It Even Matter? [View article]
    Wow, "dystopian"...I must say I learn more new words from James than any other contributor!
    Feb 19, 2012. 02:44 PM | 5 Likes Like |Link to Comment
  • A Monthly Pay Option-Income CEF Yielding 10.6% [View article]
    UNII is Undistributed Net Investment Income. Unfortunately, it's not a great measure to evaluate equity CEF's income because it only considers investment income, i.e. portfolio dividends. That may be great for fixed-income funds that are all investment income (dividends and interest payments) but many CEF's rely on option-income and even appreciation to cover their distributions and thus show negative UNII.
    Oct 30, 2011. 11:20 AM | 5 Likes Like |Link to Comment
  • Why Covered Call Writing Is No Free Lunch [View article]
    I would disagree. Yes, covered-call funds will underperform the broader market in a ramp up market like we've seen from the March, 2009 lows through say March, 2011, but these funds CAN outperform in most other market environments, i.e. flat markets, volatile range bound markets, or even in a bear market.

    I say CAN, because alot depends on the fund's portfolios. ETY is not a particularly good example because the fund has not had good stock picks and so if the holdings don't keep up with the indices the fund sells options against, then you can get a double negative effect in a ramp up market. However, funds that have outperforming holdings and sell index call options can actually keep up with the broader market even in a ramp-up market and will certainly outperform in other market environments. However, I agree with you in regards to funds that use a covered-call strategy on individual positions (i.e. non-index).
    Jun 29, 2011. 09:28 AM | 5 Likes Like |Link to Comment