George Spritzer

CEF Weekly Review: Ping Pong, Anyone?

I agree that ADX management should offer voluntary tender offers if the discount stays over 10%. That is a win-win solution for all shareholders.

CEF Weekly Review: Ping Pong, Anyone?

Great review, Joe!

I think there are a few things that would make it hard for an activist to try to close ADX:
- ADX has about $1 billion in assets. The activist would need very deep pockets
- ADX has a long history and some shareholders have a very low cost basis and do not want any taxable events to occur.
- ADX is well managed and has a low expense ratio and low turnover ratio. They do not use gimmicks like managed distributions and they only pay out what the fund actually earns.

I currently own ADX in an IRA account, so I'd get a one time benefit if it were liquidated, but I don't mind if it stays the way it is. That way it keeps on providing opportunities to swing trade it based on mean reversion of the discount.

Trading Closed-End Funds - An Update

Ben-

What is your opinion of Central Securities (ticker CET)? It has a low expense ratio and high discount to NAV. Their top holding is Plymouth Rock which is private. It is a solid company, but the lack of liquidity might add to the CET discount.

A System for Trading Closed-End Funds

Interesting system, Ben.
What do you use as a sell indicator?

Three Closed-End Funds of Funds

Hi Eric-

If you re-read my blog article again, I did say that the "double discount" only applied to the energy portion of the ADX portfolio. Your 14% overall portfolio discount is about right however, and I should have also included that calculation to avoid confusion. The calculation would become much more confusing if PEO decided to buy some ADX because of the circularity.