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George Spritzer, CFA  

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  • MSP: A Low-Volatility Sector Closed-End Fund Using The GARP Approach [View article]
    Jim-

    No return of capital in recent distributions. Mainly short and long term capital gains.

    http://tinyurl.com/nln...
    May 29, 2015. 04:14 PM | 1 Like Like |Link to Comment
  • FFNOX: Is It Better Than The Robo-Advisors? [View article]
    I'm a fan of Mebane Faber, and I took a look at his new GAA ETF. There is a zero expense ratio for the ETF itself, and a total expense ratio of 0.29% only because of the underlying funds. But I wonder how long that will be sustainable.
    May 28, 2015. 04:57 PM | 1 Like Like |Link to Comment
  • MSP: A Low-Volatility Sector Closed-End Fund Using The GARP Approach [View article]
    Pinot44:
    I don't mind a smaller assets under management as long as the expense ratio is not too high. But it is true that the trading liquidity for MSP is not very good.
    May 28, 2015. 04:46 PM | 1 Like Like |Link to Comment
  • This Leveraged Global Bond CEF Is On Sale [View article]
    Scooter- Looking at the top 10 countries they own, I don't see Greece, but there is a 6% exposure to Italy. But the managers have a lot of flexibility and depending on what happens they could even benefit if Greece fails to receive a bailout.
    May 28, 2015. 09:11 AM | 1 Like Like |Link to Comment
  • This Leveraged Global Bond CEF Is On Sale [View article]
    Blackstone-
    Thanks for the kind words. I know I have learned a lot from comments on Seeking Alpha articles, maybe more than from the articles.
    May 27, 2015. 11:11 PM | 1 Like Like |Link to Comment
  • FFNOX: Is It Better Than The Robo-Advisors? [View article]
    If investing in funds like FFNOX becomes too popular, it could cause a depression in this country, since 95% of Wall Street would be unemployed :)
    May 27, 2015. 11:08 PM | 4 Likes Like |Link to Comment
  • MSP: A Low-Volatility Sector Closed-End Fund Using The GARP Approach [View article]
    joecharnc- I agree with you up to a point, but if the distributions are high enough a drop in NAV over time may be OK. In 2007, MSP was paying out a whopping $0.45 a quarter which compensates for some of the NAV drop.

    Another example is the Cornerstone funds which pay out over 20% a year. They usually trade at premiums over NAV, but were available at a discount late last year. Even if their NAV remains flat or drops a little, the 20%+ distribution compensates you for (if you buy them at the right time).
    May 27, 2015. 04:44 PM | Likes Like |Link to Comment
  • MSP: A Low-Volatility Sector Closed-End Fund Using The GARP Approach [View article]
    Frogbert-

    I agree with you 100%. In fact, I wrote a positive article on BCX recently.

    When I ran the covered call screen on cefconnect, BCX did not appear because they categorized it as US Equity-Commodities fund instead of as a covered call fund.
    May 27, 2015. 04:38 PM | 1 Like Like |Link to Comment
  • MSP: A Low-Volatility Sector Closed-End Fund Using The GARP Approach [View article]
    Gary747-
    Thanks for your comments. There are many good CEF choices available now as discounts have widened in many asset classes.
    May 27, 2015. 04:32 PM | Likes Like |Link to Comment
  • MSP: A Low-Volatility Sector Closed-End Fund Using The GARP Approach [View article]
    AlanS9: MSP has been paying out almost 9% a year since 2010 which tends to reduce the NAV. The covered call strategy also tends to lower returns somewhat in bull market environments but can add to returns in sideway markets.

    Prior to 2010 the distributions were higher. Back in 2007, it paid out $0.45 a quarter which was gradually lowered to $0.26 in 2010.
    May 27, 2015. 01:30 AM | 1 Like Like |Link to Comment
  • REIT Alexandria Real Estate Equities Looks Like A Solid Long-Term Investment [View article]
    What is your estimate of NAV?
    May 16, 2015. 02:03 AM | Likes Like |Link to Comment
  • This Leveraged Global Bond CEF Is On Sale [View article]
    Saz-from_EU: Your rule of thumb would work well for funds with low turnover and a consistent asset allocation mix. But FAM has 41% turnover, uses a lot of hedging and is allowed to trade opportunistically. So the FAM of today is likely much different from the FAM back in 2013.

    I like to look at daily changes in NAV on days where interest rates move a lot, since this captures the current positions in a fund's portfolio.
    May 13, 2015. 04:22 PM | 2 Likes Like |Link to Comment
  • This Leveraged Global Bond CEF Is On Sale [View article]
    Alan Young- As you say, FAM has always paid out more than they earn. As long as the discount is 14%, I hope they continue that policy.
    May 11, 2015. 04:33 PM | 1 Like Like |Link to Comment
  • This Leveraged Global Bond CEF Is On Sale [View article]
    Ajay- I hold FAM in an IRA, and am not so concerned that they do not earn its distribution. When the discount is 14%, higher distributions mean higher alpha. The performance for FAM has been mediocre lately, but over the long term, their performance has been reasonable. A lot depends on how the US dollar will do versus emerging market currencies. I see it as more of a trading vehicle.
    May 11, 2015. 04:32 PM | 1 Like Like |Link to Comment
  • This Leveraged Global Bond CEF Is On Sale [View article]
    Frogbert- I also like KMM. On average, It owns lower rated debt than FAM. The one year NAV correlation is around 75%.
    May 11, 2015. 04:24 PM | Likes Like |Link to Comment
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