Douglas Albo's  Instablog

The Gabelli Healthcare & WellnessRX fund (GRX) is up huge today (huge for a CEF anyway) on a forced buy-in perhaps?

Anyway, I would be taking profits here with the fund up 6% at almost $11.50 roughly. GRX could be at a premium after today!

Another crazy move in equity CEFs!

Disclosure: I am long GRX.

A couple of the Gabelli leveraged funds I believe are vulnerable to any kind of a sell-off in the equity markets now. The Gabelli fund (GAB) and the Gabelli Global Media Trust (GGT) are pure stock based funds which use quite a bit of leverage meaning they have no fixed income to cushion any equity market sell-off. Both funds have done incredibly well due to that leverage with GAB's NAV up 22.1% YTD and GGT's NAV up 22.3% and their total return market prices have done even better which has brought both to the high end of their premium/discount range.

Now I'm not saying the markets are going to sell-off here but after the run we've had, I wouldn't be surprised to see some kind of a backtrack. Both funds are up 1% heading into a soft market close and with both funds at 4-year highs and premium valuations, I would be careful.

They're still a month off from going ex-dividend in mid June and a lot can happen before then.

Disclosure: I am short GAB.

If you own DPD or looking for a good hedge on the Dow Jones Industrial Average (DJIA), you might want to sell or short DPD up here at $16.05, up 4% right now and at a premium valuation.

Looks like someone has a forced buy-in going on since I don't know why anyone would be buying DPD up this much otherwise. If any DJIA CEF should be at a premium, it should be DPO since DPO has MUCH more NAV upside than DPD in a strong market. DPO also has a higher yield than DPD too.

Crazy things going on in the CEF universe!

Disclosure: I am long DPO.