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Douglas Albo  

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  • Equity CEFs: Buy Alert On DSE Right Now [View instapost]
    Don't own DSE anymore. MLP CEFs are volatile enough as it is and DSE was one of the more volatile ones of the bunch. Its all about timing these funds but don't get married to them.
    Jun 11, 2015. 09:51 AM | 1 Like Like |Link to Comment
  • CEF Strategies: Municipal Bond CEFs Back On Sale [View article]
    The expense ratio is reflected in the fund's NAV. In other words, it is absorbed by the fund. So the NAV distribution rate is net of the expense ratio.

    Of course, the expense ratio has nothing to do with the market price (which is set by investors) so the market price distribution would also be essentially net of fees as well. Hope that makes sense.
    Jun 9, 2015. 03:38 PM | 3 Likes Like |Link to Comment
  • CEF Strategies: Municipal Bond CEFs Back On Sale [View article]
    Cuts have been increasingly common in muni CEFs for awhile now. My table above shows about half the funds with cuts over the past year and even a couple with raises.
    Jun 8, 2015. 06:58 PM | Likes Like |Link to Comment
  • CEF Strategies: Municipal Bond CEFs Back On Sale [View article]
    These funds tend to move up or down together so it isn't so much which fund you buy as when you buy it. That said, MHI has been at a premium for quite some time and has come down hard recently. I just happen to like funds at wider discounts if they are available.
    Jun 8, 2015. 06:53 PM | 5 Likes Like |Link to Comment
  • CEF Strategies: Municipal Bond CEFs Back On Sale [View article]
    Funds generally hold to maturity or when they are called so for CEFs, that would be their source. Usually the concern is that you replace higher coupon bonds with lower coupon ones and you either have to go farther out in maturity or go down in credit quality.
    Jun 8, 2015. 06:42 PM | 4 Likes Like |Link to Comment
  • CEF Strategies: Municipal Bond CEFs Back On Sale [View article]
    Thanks James! And continued success to you...
    Jun 8, 2015. 01:53 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Now Is The Time For The Nuveen Global Equity Income Fund [View article]
    Like all of the Eaton Vance option funds, ETW is more index correlated with the top NASDAQ, European and Asian (Japan really) stock names. You'll get a more diverse portfolio with JGV with positions that don't necessarily show up in the top of the index funds.
    May 12, 2015. 01:32 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Now Is The Time For The Nuveen Global Equity Income Fund [View article]
    I have been endorsing AOD/AGD all this year. This is not a matter of picking one over the other as all three funds appear to have gotten their houses in order (updated strategies, reasonable NAV yields, etc) and are now growing their NAVs.

    http://seekingalpha.co...

    http://seekingalpha.co...
    May 11, 2015. 06:06 PM | 3 Likes Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors - Part III [View article]
    GRX was discussed at length in the first "insanity" article. As you know, I've been a big endorser of GRX and have written about or included GRX in my articles more than any other fund. And yes, I agree, Gabelli should have raised the distribution again in December or March. Certainly deserves it.
    Apr 26, 2015. 11:26 AM | 1 Like Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors - Part III [View article]
    As long as the NAV is growing, the more return of capital in the distributions the better. ROC is considered nondividend distributions on 1099's so it is essentially tax-deferred income until you sell the fund.

    A lot of these funds have past realized losses they can use to include as ROC even while their NAVs are growing.
    Apr 23, 2015. 05:52 PM | 6 Likes Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors - Part II [View article]
    Thank you all very much. Comments like yours make it all worthwhile.
    Apr 19, 2015. 08:37 PM | 1 Like Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors - Part II [View article]
    Thanks for your note. The selection process of CEFs is an inexact science. Your best bet, depending on the size of your portfolio, is to have 10-20 funds spread among different income strategies and portfolios and then to add or reduce positions as opportunities allow.

    Short term NAV performance (1-year or less), longer term NAV performance, discount/premium, NAV/market yield all are important when selecting funds to own but probably the most important is just knowing how these funds act in different market environments. They can be like children really.

    I also own ETFs, both long and short, because you obviously get direct market correlation from ETFs whereas there's no such guarantee with CEFs.
    Apr 14, 2015. 08:51 AM | 6 Likes Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors - Part II [View article]
    ETJ is the only EV option income fund I haven't owned for years. Just never bought into the "risk-adjusted" buy Put option component. Historically, its been a huge expense for the fund that hardly ever pays off.

    If you're that bearish on the market, best to be in cash.
    Apr 13, 2015. 06:28 PM | 5 Likes Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors [View article]
    Excellent explanation. Thanks for the help...
    Apr 13, 2015. 10:16 AM | 2 Likes Like |Link to Comment
  • Equity CEFs: The Insanity Of CEF Investors [View article]
    You seem to be bound and determined to prove a point or prove others wrong. Well, that's fine.

    First of all, GRX's 2011 performance was not 0% because you simply assumed their were no distributions that year. There were. Gabelli distributed $0.7225/share in April of 2011 so GRX's actual performance was more like 10.6%. Rights Offerings didn't begin until 2013.

    http://bit.ly/1ciOSsB

    And do you understand that it is the volatility of a CEF's market price...established by mostly unsophisticated investors...that gives YOU, the informed investor, an advantage over them? If you want to compare risk adjusted returns, sharpe ratios or the like, you would really have to compare GRX's NAV, not its market price, to other securities such as VGHAX, since its the NAV that is the true comparable. Unfortunately, I doubt anyone has that information because most historical price and distribution data for NAVs are either wrong or omitted.

    Look, if you want to buy and hold, VGHAX is a great choice. I prefer a little more excitement and I prefer to go up against mostly uninformed investors who will make mistakes in their trading. CEFs, and not just GRX, will give you many more opportunities for that.
    Apr 10, 2015. 02:01 PM | 4 Likes Like |Link to Comment
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