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George Spritzer » Comments » GAB

  • CEF Weekly Review: Ping Pong, Anyone? [View article]
    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.
    Nov 09 12:11 pm |Rating: +1 0 |Link to Comment
  • CEF Weekly Review: Ping Pong, Anyone? [View article]
    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.
    Nov 08 17:07 pm |Rating: +1 0 |Link to Comment
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